Annual Report 2008 - Ministry of Finance and Planning

4. Reform Initiatives
180
Environment Conservation Levy Act No.26 of 2008
Recognizing the emphasis placed on environment conservation in the backdrop of implementation of an accelerated
development process, the Government deemed it necessary to introduce legislative measures to assure the protection of
the environment and thereby promote sustainable development. The objective of this Act is to impose an Environment
Conservation Levy on certain items owned by consumers, specified items imported into or manufactured in Sri Lanka or
specified services provided in Sri Lanka, which are likely to harm the environment.
As per the provisions of the Act, the rates to be imposed would be calculated on either ad volorem or specific basis, to be
specified by the Minister of Finance in consultation with the Minister in charge of the subject of Environment. The related
Gazette Order will specify the rate and the category of goods or services in respect of which the Levy would be imposed.
The Levy if imposed on consumers, will be collected through an institution specified in such Order and if imposed on an
importer, will be collected by the Director General of Customs in terms of the Customs Ordinance. The levy if imposed on
a domestic manufacturer or a service provider will be collected by the Director General of the Customs in terms of Excise
(Special Provisions) Act, No. 13 of 1989.
Such collection authorities are responsible for the collection, administion and recovery of the ECL and to ensure that proceeds
are remitted to the Environmental Conservation Levy Account of the Consolidated Fund. In case of a default, the Central
Environmental Authority is empowered to instruct the Director General of Customs to proceed to recover the amount in default
and any related penalty. Further the authority itself also may take necessary steps to recover the amount in default and any
related penalty.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008