The major export market for such products which is the West has virtually crashed due to the economic turmoil that region is experiencing. That has made it seemingly impossible for the company to maintain the mandatory 80% export floor to qualify for BoI status, an industry source told this newspaper.
That’s why Royal Fernwood is opting out from the BoI regime.
Meanwhile Sunil Wijesinha, Chairman Dankotuwa Porcelain said that after the Great Recession of 2008, Dankotuwa saw the writing in the wall as far as exports to the West were concerned.
“That’s why we negotiated with the BoI then and got a concession from them to broaden the scope of the BoI agreement by getting the annual 80% export requirement to be extended over a five year period beginning from 2009, he said.
“This month being the Christmas season will see local sales increase to 50% in the exports: local sales ratio,” Wijesinha said.
http://www.thesundayleader.lk/2011/12/04/abandons-boi-regime/