The Parliamentary Committee on Public Finance (CoPF) has approved a Resolution under the Customs Ordinance and two Orders under the Sri Lanka Export Development Act, paving the way for the implementation of the Government’s National Tariff Policy and a comprehensive overhaul of the country’s import tariff structure.
The approvals were granted at a meeting chaired by CoPF Chairman MP Dr. Harsha de Silva, which considered the Resolution published in Extraordinary Gazette No. 2478/03 under the Customs Ordinance and Orders published in Extraordinary Gazette Nos. 2478/04 and 2479/38 under the Sri Lanka Export Development Act.
The Gazette Notifications are scheduled to be debated in Parliament today before being submitted for approval.
Officials from the Finance Ministry, Sri Lanka Customs, and the Export Development Board (EDB) told the Committee that the measures give effect to the 2026 Budget proposal to introduce a National Tariff Policy by restructuring Customs import duty rates from the existing 0%, 15%, and 20% bands into a four-tier structure of 0%, 10%, 20%, and 30%, with effect from 1 April 2026.
Officials said the reforms extend beyond changes to import duty rates and represent the first phase of a long-term tariff policy aimed at creating a more scientific and predictable trade regime capable of integrating Sri Lanka more effectively into global supply chains.
Under the new framework, imports will be classified according to the UN Broad Economic Categories (BEC Revision 5), requiring the reclassification of numerous Harmonised System (HS) tariff codes into four principal categories: capital goods, intermediate goods, sensitive intermediate goods, and consumer goods.
The Committee was informed that the policy seeks to balance the protection of domestic industries with revenue stability while improving Sri Lanka’s competitiveness as a manufacturing and export destination.
Officials also revealed that the effective import tax on ceramic tiles, currently estimated at around 85% to 90%, will be reduced in stages to 20% by 2029 as part of measures to lower construction costs and encourage investment in housing and infrastructure.
The Government also plans to introduce new national tariff subcategories in response to requests from domestic industries, while gradually phasing out para-tariffs, including the CESS and the Ports and Airports Levy (PAL), by 2029 in favour of a simpler tariff regime.
The CoPF advised officials to develop measures to mitigate any adverse effects arising from tariff liberalisation.
According to officials, the reforms are expected to support the EDB’s target of doubling Sri Lanka’s export earnings from $ 18 billion to $ 36 billion over the next five years while strengthening the country’s integration into global value chains, particularly in electronics, rubber products, pharmaceuticals, and information technology.
The Committee also expressed concern over delays in maintaining trade statistics, with Dr. de Silva noting that the Department of Trade and Investment Policy’s trade database had not been updated since 2021. The Committee instructed officials to update all trade data and related information required for evidence-based policymaking within one week.
The meeting was attended by Deputy Ministers Chathuranga Abeysinghe and Dr. Kaushalya Ariyarathna, along with MPs Ravi Karunanayake, Harshana Rajakaruna, and Lakmali Hemachandra.