By: Staff Writer
May 04, Colombo (LNW): A sweeping reform agenda backed by the International Monetary Fund is reshaping operations at Sri Lanka Customs, placing governance, transparency and digitalisation at the center of efforts to plug revenue leakages and restore institutional credibility.
At the heart of the reforms is a strict anti-corruption framework. Authorities are pushing a “zero tolerance” culture within Customs, supported by a revamped Code of Conduct that simplifies ethical guidelines while mandating periodic training and annual compliance declarations. The aim is not just symbolic reform but enforceable accountability, strengthened through closer coordination with the Commission to Investigate Allegations of Bribery or Corruption to ensure misconduct is investigated and penalised effectively.
Technology is emerging as the primary tool for change. From May 2025, cargo manifests must be submitted exclusively through the ASYHUB platform, eliminating paper-based systems long associated with delays and manipulation. Meanwhile, the expansion of the ASYCUDA World system—supported by United Nations Conference on Trade and Development is expected to sustain automated revenue collection through 2027. A pilot program for fully paperless Customs Declarations, initially rolled out for Authorized Economic Operators, signals a broader shift toward end-to-end digital processing.
Policy reforms are also reshaping trade flows. The gradual lifting of vehicle import restrictions once a key control measure reflects IMF-backed liberalisation efforts, while a new e-bidding system for auctioning seized goods aims to curb discretion and improve transparency. At the operational level, Customs is introducing risk-based auditing and strengthening Post-Clearance Audit mechanisms to better target high-risk shipments rather than relying on blanket inspections.
Equally significant is the push for inter-agency data integration. Improved information sharing with the Inland Revenue Department is intended to detect discrepancies such as transfer pricing fraud, ensuring businesses cannot exploit gaps between institutions to underreport values.
Deputy Finance and Planning Minister Anil Jayantha Fernando has framed these changes as a shift from output-driven performance to process-driven efficiency. While revenue collection remains strong, he argues that long-term gains will depend on innovation in workflows and systems. Digitalisation, he notes, reduces human intervention historically a source of corruption while improving speed, accuracy and transparency.
Beyond governance, the reforms carry broader economic implications. Faster clearance times can reduce costs for importers and exporters, improve supply chain efficiency and ultimately benefit consumers. However, officials acknowledge challenges, including resistance to change and resource constraints within the department.
Despite these hurdles, the reform momentum appears steady. With institutional collaboration, private sector engagement and sustained policy backing, Sri Lanka Customs is being repositioned not just as a revenue collector, but as a modern trade facilitator aligned with global standards. The success of this transformation may ultimately determine how effectively the country balances fiscal recovery with economic growth in the years ahead.