📈 CoPF Approves New Four-Band National Tariff Framework

Sri Lanka's Committee on Public Finance (CoPF) has approved a Resolution under the Customs Ordinance and two Orders under the Export Development Act, setting the stage for a major overhaul of the country's trade and investment environment. • New Four-Band Tariff Structure: Effective April 1, 2026, the previous import duty system (0%, 15%, 20%) is restructured into a four-band system of 0%, 10%, 20%, and 30%. Based on the UN Broad Economic Categories (BEC Rev. 5), imports are now categorized under capital goods, intermediate goods, sensitive intermediate goods, and consumer goods. • Phasing Out Para-Tariffs: To establish a simpler trade regime, the government aims to completely phase out temporary para-tariffs, including the CESS and Ports and Airports Levy (PAL), by 2029. • Relief for Construction: The effective import tax rate on ceramic tiles, currently at 85–90%, will be gradually reduced to 20% by 2029 to ease infrastructure and housing development costs. • Export Targets & Supply Chains: The reforms are designed to help the Export Development Board double Sri Lanka's annual export earnings from US$ 18 Bn to US$ 36 Bn over the next five years. The framework prioritizes global integration for rubber products, electronics, pharmaceuticals, and information technology. • Data Integrity Mandate: Expressing serious concern over trade statistics that have remained un-updated since 2021, the CoPF Chairman ordered the Department of Trade and Investment Policy to update all data records within one week to facilitate evidence-based policymaking.