The Cabinet of Ministers in Sri Lanka has given the green light to implement an updated National Tariff Policy, following recommendations from the national tariff policy committee, according to Minister Nalinda Jayatissa. He stated, “The National Tariff Policy was introduced to establish a transparent, predictable, and coherent tax framework to support Sri Lanka’s trade, investment, and fiscal objectives.”
A previous decision by the cabinet had already sanctioned a review of this policy to introduce necessary amendments. These changes aim to ensure the policy’s compliance with relevant tax laws and address any issues that have arisen during its implementation.
The National Tax Policy Committee has conducted a thorough review of recent economic and fiscal conditions, as well as a detailed examination of the tariff policy provisions that may not be fully aligned with trade-related data and applicable laws and regulations.
Minister Jayatissa highlighted that the review took into account observations made by the Parliament’s Committee on Finance. These observations focused on eliminating inconsistencies within the policy, ensuring alignment with policy provisions, and meeting constitutional requirements.
Related Story: Sri Lanka plans to implement the national tariff policy in three phases starting from 2025.
Sri Lanka currently imposes high import duties along with para-tariffs, such as the port and airport levy and the ‘export development’ CESS. These have significantly increased the cost of imported raw materials, making it challenging for companies outside of the Board of Investment zones, which benefit from tax-free importation, to remain competitive in the export market.
(Colombo/Feb24/2026)
