"The government has imposed a 5 percent customs duty and another 5 percent surcharge on gold imports," a top government official who is involved with the decision making told Reuters on condition of anonymity.
"There is an increase in gold imports and we have seen some people using the situation as an arbitrage with India having a tax. We also have found some leackages and we want to prevent this."
Recently, Sri Lankan customs nabbed a series of people suspected of smuugling gold out of the country at airports. (Reuters)