Amid rising discontent from consumers and small-scale importers, Sri Lanka’s e-commerce sector has come under increasing strain due to a mix of stringent tax policies, customs delays, and the absence of a supportive regulatory framework.
The boom in cross-border online purchases has been met with government-imposed restrictions and burdensome clearance procedures, creating bottlenecks in the supply chain.
These issues have stifled growth in a sector that once held promise as a post-pandemic economic driver, especially for entrepreneurs and SMEs relying on global platforms like Amazon, AliExpress, and eBay.
In response to the growing crisis, the Cabinet of Ministers this week approved the formation of a Special Committee tasked with offering temporary operational relief and designing a comprehensive regulatory framework for cross-border e-commerce in Sri Lanka.
The decision was announced at the post-Cabinet media briefing on Tuesday by Cabinet Spokesman and Minister Dr. Nalinda Jayatissa.
He said the new committee would be made up of officials from key government institutions and would focus on two core responsibilities: short-term facilitation of e-commerce import clearance and long-term regulatory planning to ensure smoother operations and better revenue collection.
“There is an urgent need to regulate and support the rising volume of goods entering the country through cross-border online platforms,” Dr. Jayatissa stated. “We must ensure the Government’s ability to collect taxes without stifling this growing digital economy.”
The surge in cross-border e-commerce has overwhelmed the existing customs infrastructure. Recent amendments to clearance procedures by Sri Lanka Customs, intended to reduce loopholes and inefficiencies, have inadvertently worsened the situation.
These new processes have resulted in long delays, higher transaction costs, and less transparency, disproportionately affecting individual buyers and small-scale importers.
The issue is further compounded by mounting complaints about erratic taxation and inconsistent handling of packages, eroding public trust in the system. Entrepreneurs who built businesses around imported goods now face declining revenues and operational uncertainty, while everyday consumers are discouraged by hidden charges and unpredictable customs experiences.
The committee’s formation was initiated by President Anura Kumara Dissanayake in his capacity as Finance, Planning, and Economic Development Minister. It aims to strike a critical balance—supporting innovation and online commerce while securing state revenue and regulatory oversight.
With digital trade poised to become a significant component of Sri Lanka’s economic future, experts stress that policy coherence, technological upgrading of customs systems, and private sector consultations will be vital to resolving the current impasse and unlocking the sector’s full potential.
