By: Staff Writer
August 16, Colombo (LNW): Sri Lanka Customs has officially launched its new web-based Customs Document Notification System (CDNS), a digital platform aimed at enhancing transparency and efficiency in cargo clearance. The CDNS allows consignees and declarants to monitor the real-time status of customs declarations and cargo movements, providing vital visibility and timely feedback for improved compliance, the agency said in a statement.
This digital leap marks the conclusion of Phase 1 of the Automated Risk Management System Project, which signals a major modernization milestone for customs operations. The software, developed by Creative Web Technologies through a competitive bid among eight local firms, reflects the agency’s ambition to streamline trade facilitation and bolster stakeholder trust.
The CDNS addresses long-standing criticisms of Sri Lanka’s manual customs processes, which have been plagued by inefficiencies, paperwork delays, opaque procedures, and opportunities for corruption. Reports from the World Bank and local trade associations have emphasized the need for a digitized, accountable system to reduce transaction costs, combat undervaluation and tax evasion, and encourage foreign investment.
The system launch comes amid robust financial results in the first half of 2025. Customs has collected over Rs. 1 trillion in revenue by June, marking nearly half of its Rs. 2.115 trillion annual target—of which vehicle imports alone contributed approximately Rs. 165 billion through mid-June. Overall collections indicate a strong start to the year, with customs on track to exceed government revenue expectations
However, the department’s performance has not been free of controversy. Media scrutiny intensified following reports that over 300 containers were released without physical inspection. Sri Lanka Customs clarified that in January 2025, under acute port congestion, a new Screening Unit was deployed to expedite low-risk cargo. Based on risk criteria, roughly 60% of containers were released document-based only. An estimated 1,500 to 3,000 containers arrive daily, while inspection facilities can handle only a fraction. Thus, the selected “auto-release” policy was part of a broader congestion-relief effort aligned with international customs norms
At a press briefing, Additional Director General Seevali Arukgoda reassured the public that the 323 containers in question held only declared industrial raw materials—plastics, textiles, chemicals, cement, pesticides, machine parts, fertilizers, and wood—from countries including India and China. No arms, narcotics, or undeclared valuables were involved, he affirmed. A post-clearance audit and investigation by a Ministry of Finance panel and the CID are ongoing to ensure full transparency
Overall, the CDNS represents a progressive shift in Sri Lanka Customs’ digitization journey. Coupled with solid revenue inflows, it underscores the department’s modernization drive. Yet, the container-clearance controversy underscores the delicate balance between operational efficiency and public accountability—a challenge that underscores the ongoing need for oversight and reform.
