August 26, Colombo (LNW): Sri Lanka Customs is on the verge of achieving a significant milestone by surpassing Rs 1 trillion in revenue within the next few days, according to its Director General, Sarath Nonis.
He made this announcement at the 40th Annual General Meeting of the Spices and Allied Products Producers and Traders Association, held recently at Hilton Residencies, Colombo.
Nonis emphasised the crucial role of export earnings in revitalising the nation’s economy during challenging times. He urged exporters to focus on producing value-added goods to maximise export revenue and tap into high-value markets.
“As the country navigates economic and social challenges, export growth is essential in stabilising our financial situation. The government is shifting towards an export-oriented economic model by implementing policies aimed at streamlining bureaucratic processes, attracting foreign investment, and enhancing low-cost industries.
Numerous trade agreements are also being pursued to provide preferential access to larger markets,” he said.
The Director General further highlighted the impressive achievements of the Customs Department, which recorded its highest-ever tax revenue of Rs 972 billion in 2023.
This year, the department targets Rs 1.5 trillion in revenue, and as of August, it has already reached Rs 975 billion, positioning it to achieve the historic Rs 1 trillion mark soon.
Addressing the spice industry, Nonis pointed out that Sri Lanka’s share in the European spice market remains minimal. He stressed the need for greater value addition to compete more effectively in lucrative global markets.
“Our penetration into key markets reveals that around 32% of our spice exports go to India, 24% to Mexico, 10% to the USA, and 5% to Peru. However, our share in the European spice market, projected to reach USD 7 billion by 2025, is currently a mere 0.6%. This indicates the untapped potential for exporting higher-value products.”
Nonis called for further studies to better understand the export performance of various sectors and the impact of value addition under export facilitation schemes.
He also highlighted ongoing efforts to combat malpractices in the export process, including enhanced detection of fraud and smuggling, which have generated substantial revenue through fines and improved Sri Lanka’s standing in international trade.
To improve operational efficiency, Customs has introduced automated cargo clearance systems and initiatives to minimise human intervention, thereby enhancing trade compliance.
“Our strategic plan for the next five years prioritises integrity and the development of high standards in our operations,” he added.
During the meeting, Christopher Fernando of Malwatte Valley Plantations PLC was elected as the new President of the association.
