Sri Lanka Customs Revenue Soars surpassing Targets amid Anti-Corruption Drive

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By: Staff Writer

August 10, Colombo (LNW): Sri Lanka Customs has reported a record-breaking surge in revenue in 2025, even as it accelerates anti-corruption reforms and grapples with fresh misconduct allegations.

By August 1, the department had amassed Rs. 1,227 billion, with July alone contributing a historic Rs. 231 billion—driven largely by taxes on over 28,000 imported vehicles. This performance surpasses the annual revenue target of Rs. 2,115 billion by Rs. 116 billion

These fiscal gains come at a pivotal moment for Sri Lanka Customs, which is rolling out a sweeping reform programme aligned with the National Anti-Corruption Action Plan (NACAP) 2025–2029. Key measures include establishing an Internal Affairs Unit to investigate corruption complaints, embracing digitalised systems to minimize manual interventions and bringing in risk-based assessments to channel up to 80% of shipments through expedited “green lanes”.

Draft legislation empowering Customs with full control over goods entering and exiting Special Economic Zones (SEZs) is expected by end-October 2025

Transparency is also being enhanced through a new quarterly reporting mechanism, starting Q2 2025, where Customs will publish progress on digitisation and automation via the finance ministry’s website.

Trade unions have thrown their weight behind the reforms, signaling a collaborative shift in the department’s integrity culture.

Nevertheless, the department is under scrutiny for alleged malfeasance. Investigations by CIABOC (the Commission to Investigate Allegations of Bribery or Corruption) have been launched into fraudulent vehicle registrations and unauthorised container clearances. Among the probes is a case involving undervalued duties on ten BYD vehicles, and the suspected release of 312 containers without proper inspection?

In addition, CIABOC has seized 12 more illegally registered vehicles, following earlier seizures totaling 15, which had cost the government roughly Rs. 597 million

Sri Lanka Customs has publicly denied suggestions of impropriety surrounding the release of 323 containers in January 2025, stating the contents were industrial raw materials cleared under established risk-management protocols. A post-clearance audit overseen by a committee appointed by the Finance Ministry and the CID is currently underway.

Customs has achieved impressive revenue growth, exceeding targets through reforms and digitisation. But concurrent allegations—ranging from suspicious container releases to fraud in vehicle registration—highlight the urgency of the integrity measures being enacted. The department’s ability to sustain its financial gains hinges critically on the effective implementation of NACAP directives and transparency-enhancing tools.

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