AliExpress, the global e-commerce platform owned by China’s Alibaba Group, has announced the suspension of several low-cost shipping options to Sri Lanka and Pakistan, citing changes in customs duty regulations introduced by both governments. The suspension, effective from July 7, 2025, has stirred concern among online shoppers and small businesses relying on affordable imports.
In a notice to its global network of sellers, AliExpress stated that logistics routes to Sri Lanka and Pakistan will now be processed offline. Sellers will no longer be able to select certain budget-friendly shipping methods when dispatching goods to these countries. The change primarily affects small parcel shipments, which were a popular means of purchasing inexpensive consumer items ranging from electronics accessories to fashion goods.
The move follows customs reform initiatives introduced by both nations in an effort to strengthen revenue collection and protect domestic industries. In Sri Lanka’s case, the government has replaced its previous flat-rate import duty system with a more structured model that calculates taxes based on the Harmonized System (HS) code—an internationally standardized system for classifying traded products.
Deputy Minister of Industries and Entrepreneurship Chathuranga Abeysinghe addressed the public concern on social media, clarifying that no new tax has been introduced. Instead, the revision aims to close loopholes in the old system. Under the previous structure, a parcel under 1 kg could be cleared with a duty of just Rs. 800—or sometimes even free—if undervalued invoices were presented. This resulted in substantial tax revenue losses and unfair advantages for foreign imports over local products.
The updated policy now evaluates each item based on its true nature and value using the HS Code, ensuring a more transparent and equitable taxation system. Abeysinghe also emphasized that customers will not be required to visit customs offices in person, as courier services will continue to manage clearance and delivery processes.
While the policy shift is intended to curb tax evasion and support local manufacturing, AliExpress’s decision to suspend its low-cost shipping has raised uncertainty in the online shopping community. Many Sri Lankan consumers, especially students and young entrepreneurs, had grown dependent on the platform’s affordable and accessible product range.
To ease concerns, the Sri Lankan government has pledged to introduce fair exemptions for educational, medical, and research-related imports, ensuring essential sectors are not adversely affected by the reform.
The coming weeks will reveal whether other e-commerce giants will follow AliExpress’s lead or adapt to the new regulatory landscape in Sri Lanka.
