📦 Para-Tariff Phase-Out & Customs Modernization to Begin in 2028

Sri Lanka's Government has outlined an ambitious Customs modernization program alongside a phased removal of para-tariffs (cess) starting in 2028 to boost trade facilitation and eliminate revenue leakages. Key Reform Highlights: • Para-Tariff (Cess) Removal Schedule: For most products, 50% of the cess will be removed in 2028, 25% in 2029, and the remaining 25% by 2030. • Domestic Industry Protection: To safeguard local competitiveness, a slower phase-out will apply to 107 selected HS codes (25% removed in 2028 and 2029, and 50% in 2030). Protection will transition into a simplified four-band Customs tariff structure of 0%, 10%, 20%, and 30%. • Digitalization & Automation: Focus is shifting away from physical interactions through electronic platforms for import documentation, forex remittances, and online payments. • Risk-Based Inspection: Cabinet approved the procurement of new non-intrusive inspection (NII) scanners to fast-track low-risk cargo clearance while focusing enforcement on high-risk shipments. • Legislative Updates: A new Customs Ordinance and greater automation remain top structural reform priorities in alignment with recent IMF discussions.