The Board of Investment (BOI) of Sri Lanka has issued a clarification regarding the investment application and public statements made by Honor Global Singapore, following a recent media briefing held by the company.
Honor Global submitted its investment proposal to the BOI on 9 December 2023, seeking approval to manufacture and export mattresses to multiple international markets.
The BOI, together with the Department of Commerce and the Ministry of Trade, Commerce and Food Security, reviewed the application through multiple rounds of discussions, particularly in light of Sri Lanka’s obligations under the global trading framework of the World Trade Organisation (WTO).
As a WTO member, Sri Lanka is bound to adhere to the rules-based multilateral trading system, including compliance with the WTO Anti-Dumping Agreement.
Under this agreement, countries are permitted to impose anti-dumping and countervailing duties when a company exports goods at prices lower than the domestic market value or below cost of production, in a manner that causes material injury to the importing country’s local industries.
BOI explained that such trade practices can trigger investigations and lead to the imposition of restrictive duties on Sri Lankan exports, posing a risk to the stability of the country’s export-oriented industries.
In this context, the proposed export strategy of Honor Global raised concerns about the potential impact on existing Sri Lankan mattress manufacturers.
Following these discussions, Honor Global formally agreed in writing that its products would not be exported to markets with known anti-dumping or countervailing duty restrictions.
The company also requested that BOI approval for the project be granted on the condition that exports would be limited to other countries approved by the BOI.
Honor Global further expressed its intention to explore exports to restricted markets only after resolving any trade-related concerns in those jurisdictions.
Subsequently, under Section 17 of the BOI Law, the BOI granted approval for the company to proceed with manufacturing for export purposes, clearly stipulating in the agreement that exports would be limited to countries without anti-dumping restrictions.
This condition remains a central clause in the project agreement.
The BOI confirmed that Honor Global reported a total workforce of 130 employees as of June. The agency further clarified that a supplementary agreement entered in 2024 included detailed provisions regarding the volume of goods the company could export to sensitive markets, reaffirming that no export restrictions were placed on the company for other destinations.