The Issues and Challengers of Ferrous/Scrap Industry in Sri Lanka: Policy Analysis

ABSTRACT :According to the interim budget proposals put forwarded for end of year 2015, an import duty concession has been given to imported billets which are being used as a raw material for the steel industry. As a result of this duty concession there is a tendency to create a freezing status in the entireferrous scrap recycling industry starting from collection to final smelting. Thus, the main objective of this study to study the present status of the iron/ferrous scrap industry in Sri Lanka and to observe whether the given duty concession has impact on present freezing status in the entire ferrous scrap recycling industry in Sri Lanka.The study was applied baseline survey for a data collection and used several instruments of data collection such as formal questionnaires, interview guide, participatory appraisal techniques, document perusal and direct observations. In order to get more insight into the organizational and practical aspects of current status of iron scrap industry in Sri Lanka , a number of interviews were hold with Government Officials, Scrap metal recycling companies, collectors, exporters and billets importer. Finally, the study proposed short-term and long-term policy options for further enhance the scrap industry in Sri Lanka
KEYWORDS: Scarp industry, interim budget, duty concession, ferrous scrap recycling, policy analysis