Cosmetic sector losing glamour due to government’s import suspension policy

• CCI calls for govt. to urgently lift import restriction on cosmetic products
• Stresses intervention necessary to capitalise on  upcoming holiday season
• Says policy direction resulted in the emergence of a black market for international cosmetic products

The local cosmetic sector is on the brink of losing its glamour due to the policy measures taken by the government that has resulted in the emergence of the black market that is threatening the industry.
The suspension of non-essential imports to the country, which includes beauty products, has led the sector, which mainly comprises women entrepreneurs, to deal with harsh outcomes.

Due to the current temporary suspension, the Chamber of Cosmetics (CCI) shared that many individuals are hand-carrying commercial quantities of cosmetics, thus depriving the country of revenue that could have been earned through proper channels of importation. This has resulted in a black market emerging in the industry.
According to the CCI, the temporary import restriction has made it near impossible to carry out operations as they have reduced accessibility to international standard beauty products.

In a bid to enable businesses engaged in the sector to stay afloat, the CCI urged the government to remove the temporary import ban on cosmetic products at the earliest so that it can capitalise on the upcoming Christmas and New Year season.

 “Importers need at least 60 days to import cosmetics that are lead time and shipping time included. The fervent appeal of all in the industry to the authorities is to lift the temporary suspension and allow these goods to be brought in,” the CCI said in a statement to the media yesterday.
It pointed out that the imports of cosmetics do not require large sums of US dollars, they will not hurt the foreign exchange stance of the national economy.

Stating that the forex issue is understood, the CCI pointed out that the cost of imports of cosmetics as per Sri Lanka Customs data does not exceed 0.1 percent of the total import bill for both 2021 and 2022.
“It should be noted that other than the employment generated, the said imports contribute almost 90 percent of the total imports value in the form of government taxes, cess, and other statutory payments to the treasury, and also at the point of registration of goods at the NMRA,” the CCI said. 

The import restriction threatens the employment of hairdressers, beauticians, salon owners, traders, trade assistants, beauty advisors, make-up artists, and other stakeholders involved in the bridal and beauty industry.