By: Staff Writer
March 08, Colombo (LNW): Sri Lanka Customs has embarked on a sweeping digital transformation aimed at tightening revenue collection, streamlining trade processes, and reducing opportunities for corruption as part of the government’s broader strategy to centralise control over state revenues.
Senior officials at the Finance Ministry say the reforms will significantly expand the authority of Customs, enabling it to manage import, export, and cargo clearance functions currently handled by the Board of Investment (BOI). The move is aligned with policy commitments made to international lenders and is expected to reshape how trade operations are regulated in the country’s key export zones.
A major milestone in the transformation occurred on May 7, 2025, when the government made it mandatory for all shipping lines and freight forwarders to submit cargo manifests exclusively through the ASYHUB digital platform. This replaced the earlier Automated System for Customs Data (ASYCUDA World) method for manifest submissions.
ASYHUB is a cloud-based platform developed by the United Nations Conference on Trade and Development under its long-running ASYCUDA Programme. Authorities believe the new system will improve transparency and data sharing while reducing manual interventions that historically created loopholes for irregularities.
The digital transition is also linked to the planned launch of the Trade National Single Window System (TNSWS), a platform designed to integrate 18 government agencies into a unified digital interface. Officials expect the system to reduce paperwork, accelerate approvals, and simplify compliance requirements for traders.
The initiative will begin with a pilot phase scheduled for late 2026, with full operations expected to commence in 2027. Government officials note that the implementation of the single window is a benchmark tied to the country’s ongoing programme with the International Monetary Fund.
Another key reform involves transferring full regulatory oversight of goods in special economic zones to Sri Lanka Customs by October 2025. Under this arrangement, Customs will supervise the entire trade cycle, including the arrival of raw materials, the manufacturing process, and the final export of finished goods.
To facilitate the transition, a joint committee comprising officials from Sri Lanka Customs and the BOI has been established to determine the operational framework for the takeover.
Authorities are also introducing several digital trade facilitation measures. These include pre-arrival clearance systems that allow documentation to be processed before cargo reaches the port, an automated risk management system to identify high-risk shipments, and an electronic cargo tracking mechanism to monitor goods in transit.
Efforts to strengthen accountability have accompanied the technological reforms. In early 2026, Customs issued a new Code of Ethics and Conduct developed with assistance from the International Monetary Fund and the World Bank. The code is intended to institutionalise integrity standards and improve internal governance within the department.
Meanwhile, a pilot programme for Authorised Economic Operators launched in late 2025 allows accredited traders to submit Customs declarations digitally using verified electronic signatures.
Officials say these reforms represent a decisive shift toward modernising Sri Lanka’s trade administration. By replacing fragmented procedures with integrated digital systems, the government hopes to plug revenue leaks while creating a more transparent and efficient border management framework.