Sri Lanka bans export of scrap metals, including Aluminium
The cabinet of ministers’ of the island nation in South Asia, Sri Lanka has decided to ban the export of metals scrap, which includes aluminium in a proposal to save them for domestic production.
However, some scrap metal could be exported under a recommendation of the Industrial Development Board and ‘other related agencies’ the state information office said.
The critics have commented: “Increasing regulations and licensing generally paves the way for corruption in the licensing authorities.”
The export ban is being made to encourage domestic production of industries that use the scrap as raw material, the cabinet said.
The export ban is executed to weaken the prices of scrap metal to below world market levels and deny the real price to collectors and give an effective subsidy to industries that use them.
In contrast, this has to be noted that lower prices may also discourage collection.
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