By: Staff Writer
August 26, Colombo (LNW): Sri Lanka Customs (SLC) is poised to exceed its 2023 revenue of Rs. 970 billion, setting an ambitious goal of Rs. 1.5 trillion for 2024, thanks to increased Value Added Tax (VAT) and the lifting of import restrictions in October 2023.
To further strengthen its capabilities, China has committed to financially backing and enhancing Sri Lanka Customs by introducing advanced technologies.
This collaboration will unfold in three phases, with a focus on safety, security, and international cooperation under the ‘Smart Customs Project.’ China is also committed to bolstering the ‘Single Window System,’ which aims to improve mutual understanding and security.
Sarath Nonis, the Director-General of Sri Lanka Customs, expressed confidence that the Department is on track to achieve a historic revenue milestone of Rs. 1 trillion by mid-September 2024.
Nonis highlighted the significant progress in tax revenue collection this year. He announced that the Department had already reached Rs. 973 billion in tax revenue, and he is optimistic about surpassing the Rs. 1 trillion mark for the first time in history by the following month.
He attributed this success to enhanced detection of commercial transactions and smuggling, along with additional revenue from fines and penalties.
He emphasized that technological advancements, particularly the implementation of the Automated Risk Management Unit, have played a crucial role in minimizing human intervention and improving operational efficiency.
Addressing concerns about corruption, Nonis stressed that Sri Lanka Customs has taken decisive actions to combat it, including suspending around 25 officers and initiating legal proceedings against those involved in corrupt practices.
He encouraged industry stakeholders to report any wrongdoing, assuring them of the Department’s commitment to maintaining high standards of trade facilitation.
In addition to discussing revenue, Nonis provided insights into Sri Lanka’s spice export performance.
He noted that spice exports have shown modest growth, reaching $393 million in 2023, up from $355 million in 2013, reflecting an annual growth rate of just 1.03%. Approximately 32% of these exports go to India, 24% to Mexico, 10% to the US, and 5% to Peru, with minimal exports to other countries.
Nonis also highlighted the opportunities in the European Union (EU) market, which is expected to reach $7 billion by 2025. However, Sri Lanka’s current contribution to this market is only 0.6%, indicating the need for a stronger presence in higher-value markets.
To enhance Sri Lanka’s competitive edge in global spice markets, Nonis urged the industry to focus on value addition, product differentiation, and quality assurance. He called for collaborative efforts between the Government, industry, and trade associations to elevate Sri Lanka’s spice sector and drive economic growth.
