COLOMBO: Sri Lanka’s 24-carat gold price had risen to 62,000 rupees for an 8.00 gram sovereign after a 15 percent tax hike by the government, jewellers in Colombo said.
Before the New Year, gold was trading around 53,000 to 54,000 rupees for 8.00 grams.
Jewellery grade 22 carat gold was quoted around 59,000 – 60,000 rupees a sovereign, up from around 50,000-51.000 rupees before the tax hike.
The tax on gold is expected to increase smuggling into the country, while legal imports fall.
Due to a 10 percent import duty at 3 percent value added tax in India, gold imported to Sri Lanka was being smuggled into India giving a profits to smugglers in the island.
