ISLAMABAD, March 24: Sri Lanka has allowed the private sector to import duty free rice from Pakistan under the free trade agreement (FTA). A spokesman for the ministry of commerce in a statement issued on Friday said the ministry was presently working on the modality of export of duty free quantity of rice to Sri Lanka in consultation with the Rice Exporters Association of Pakistan to address concerns of exporters of rice to Sri Lanka.

Initially, Sri Lanka has only allowed its public sector agency to import rice from Pakistan under the agreement.

Under the FTA effective from June last year, Sri Lanka has given duty free market access to the export of 6000 tons Basmati on annual basis.

When the agreement was implemented in June 2005, rice was subject to duty at the rate of 9,000 Sri Lankan rupees per ton, which was subsequently increased to 20,000 Lanka rupees per ton. In spite of substantial increase in duty on rice by Sri Lanka, the market access provided by it to Pakistan remains unchanged.

The spokesman clarified that the quantity of rice exported from Pakistan in access of 6,000 tons per year would be subject to duty in Sri Lanka and there was no restriction imposed by Sri Lanka on such exports.

He said the consignments exported under the FTA (including rice) would accompany a certificate of origin issued by the EPB. The government of Sri Lanka has no control on the issuance of these certificates, the spokesman added.