Fri, 29 Mar 2024 Today's Paper

Relatively low duty on luxury goods helping Sri Lanka’s potential in retail tourism

By

16 December 2019 08:17 am - 0     - {{hitsCtrl.values.hits}}

A A A

By Nishel Fernando 
Sri Lanka’s relatively low duty structure on luxury goods such as wrist watches are supporting the country to position itself as a regional retail hub by attracting high-end tourists from the region,  competing with international retail hubs such as Dubai and Singapore. 


“The government has changed the duty structure. So we can be on par with the leading international markets. For example, in terms of wrist watches, we are on par with anyone. We can match Dubai, Singapore, Malaysia...etc. We are in fact the cheapest in the region.  We see many Indians coming to Sri Lanka to buy watches as their taxes are almost around 30-35 percent while ours is only at 7-10 percent. Therefore, we are very competitive,” Royal Lanka Agencies, Director Jawzi Dastakeer said. 


The imported branded watches are currently only subjected to Ports and Airports Development Levy (PAL) and certain clearing charges.


He was speaking to Mirror Business on the sidelines of the launch of Frederique Constant and Alpina Swiss made luxury watch brands in Sri Lanka recently. Turret, one of the verticals of Royal Lanka has been appointed as sole authorized agent for Frederique Constant and Alpina brands. 


Further, Turret is also the sole authorized agent for Raymond Weil, Baume & Mercier and Mont Blanc luxury watches in Sri Lanka. 


Dastakeer noted that their mid range and luxury watch sales had been growing at 10-15 percent until the Easter Sunday attacks in April.  


“There’s a downturn, but we are optimistic that it should be picking up soon when Chinese tourists start coming back to Sri Lanka,” he stressed. 


The tourist arrivals from China have declined sharply by nearly 40 percent at the end of November, recording the largest decline among top to tourism source markets of Sri Lanka. 
However, Dastakeer remarked that Sri Lankans are by far the largest buyers of luxury watches.


“Earlier, the main issue for brand-conscious Sri Lankans was the need to fly out to purchase their brands. However, as many brands are present in Sri Lanka now, they can purchase their preferred brands in Sri Lanka at the same price point,” he said. 


Further, easy-payment schemes have also boosted the sale of mid range and entry level luxury watches among brand-conscious young executives in the corporate sector.


Royal Lanka has acquired over 35 international clothing and watch brands under their three verticals which includes Turret, GMT and UrbanTrendz over the past few years. 


GMT serves to the mid range market with its fashionable luxury watch brands while Turret serves the luxury watch market with a particular focus on entry level luxury watches. 
Turret is also planning to open its third outlet at Shangri-La’s One Galle Face shortly as a mono-boutique. 


Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

  Comments - 0

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment





Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

VAT increase: SOUNDs death knell for publishers, readers

Though the Government imposed VAT (Value Added Tax) on vegetables and other e

How female change-makers are driving Sri Lanka’s energy saving platform

Saving energy has become more of a responsibility than a habit in today’s c

A dull Ramadan awaits Muslims amidst the Soaring Cost of Living

In the coming days, Muslims across the world will welcome the Holy Month of R

New wildlife underpass to curtail HEC

As of February 2024, Sri Lanka lost another 38 elephants as a result of the H