National Tariff Policy and Customs reforms in the offing to boost exports
The Sri Lankan government will unveil a National Tariff Policy and a new Customs Act to enhance the country’s export sector and collect US$19 billion in revenue this year, the Finance Ministry announced.
It is part of a general effort to place Sri Lanka more meaningfully in the mainstream of world trade and make its goods and services more competitive in foreign markets.
Enforcing a reformatted tariff policy and customs measures shall be sought towards aligning the trade policy of Sri Lanka according to prevailing currents of economic flow, a ministry official revealed.
By modifying tariff structures to consider technological advancements and evolving patterns of trade, the administration aims to create an even and just trading environment. For instance, lowering tariffs on raw material inputs but levying protective tariffs on finished goods should stimulate local enterprise and economic autonomy, he added.
Moreover, the government also initiated a National Export Development Plan 2025–2029 for the growth of Sri Lanka’s export sector. President Anura Kumara Dissanayake, who is also the country’s Finance Minister, recently reaffirmed in a high-level meeting that the new policy would normalise and streamline tariff regimes.
The reform will enable exporters to purchase quality raw materials at reasonable prices, thereby being more competitive in the overseas market.
A new Customs Act is also being drafted to make trade transactions easier and collect more revenue.
Meanwhile, Main Opposition Parliamentarian of the Samagi Jana Balawegaya (SJB), Dr. Harsha de Silva, urged the government to act proactively after the recent US decision on retaliatory tariffs by President Donald Trump on several countries including India.
He emphasised the need to safeguard Sri Lanka’s trade relations with the US, the island nation’s biggest export market. Dr. de Silva reiterated that lack of experience was no excuse for complacency and offered to assist the government to handle these trade problems as the head of the committee on public accounts.
Several leading economists have warned that the US policy change on tariffs is likely to impact Sri Lanka by increasing the imports cost and reducing the competitiveness of Sri Lankan exports to the US market.
Sri Lanka has already imposed high import tariffs and other levies such as the port and airport levy and the export development CESS.
These para-tariffs have added significantly to the cost of imported raw material, making it hard for firms outside Board of Investment (BOI) zones—where they are entitled to tax-free importation—to compete abroad meaningfully.
Here, the government is to introduce the long-awaited tariff policy, along with business development support, as revealed by Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe.
The new policy is to have a straightforward, transparent, and predictable tariff regime that would enable exporters to have access to raw materials of concern to them at competitive prices.
Mr. Abeysinghe also declared other measures such as the imposition of minimum prices for inputs and value-added services, reducing the cost of production in the energy sector, and reducing the cost of transport. All these are designed to improve Sri Lanka’s business environment and boost investment.
One senior economist, who did not wish to be named, highlighted the need for a credible and transparent mechanism to filter industry proposals on elimination or reduction of tariffs and para-tariffs.
It should be an evidence-based, data-driven mechanism to help ensure that business and labour are appropriately assisted by government for the adjustment needed.
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