Sri Lanka Tariff 2026: Stay Compliant, Reduce Costs

Overview of Sri Lanka's Import Duties

Sri Lanka utilizes a complex multi-tiered tariff structure designed to generate revenue and protect domestic industries. In addition to standard Customs Import Duties (CID), importers face various para-tariffs, including the Ports and Airports Development Levy (PAL) and CESS levies, which significantly impact the final landed cost. SME importers must accurately calculate the cumulative tax base, as taxes like VAT are calculated on the aggregate of the CIF value plus all other duties. The system is regulated by the Sri Lanka Customs Ordinance and is subject to frequent policy updates based on economic conditions.

Duty and Tax Rate Summary

Key Duty Types

• General Customs Duty: This is the primary tariff applied to the CIF value of goods, generally assessed on an ad valorem basis, though specific rates apply to agricultural commodities.
• Excise Duty: A selective tax imposed on specific goods such as petroleum products, tobacco, alcohol, and vehicles to discourage consumption or raise specific revenue.
• CESS Levy: A protectionist para-tariff applied to a wide range of imports, calculated either as a percentage of the value or a specific amount per unit.
• Ports and Airports Development Levy (PAL): A statutory levy charged on the CIF value of most imported articles to fund infrastructure, functioning similarly to an MPF.
• Antidumping Duties: These are additional duties levied on imports sold below fair market value to prevent injury to domestic industries, though less frequently applied than standard tariffs.