Sri Lanka to phase out import cess to boost export competitiveness

Colombo, March 4 (Daily Mirror) - The government has approved a plan to phase out the cess imposed on imported goods over a four-year period from 2026 to 2029, aiming to enhance the competitiveness of local products in international markets.

The cabinet spokesman and Minister Nalinda Jayatissa said the continuous imposition of non-customs import duties, including cess and other taxes, intended to protect selected domestic industries and generate revenue, has in recent years increased production costs for export-oriented sectors, particularly for intermediate and input goods. This has reduced the competitiveness of Sri Lankan products abroad and hindered export-led economic growth.

He said the phased removal of the cess, covering goods under 2,634 identified Combined Classification Codes, is intended to lower production costs, support industrial development and value addition, facilitate trade, and ensure a level playing field for all stakeholders, in line with internationally accepted practices and World Trade Organization policies.

The joint proposal, submitted by the President in his capacity as Finance, Planning and Economic Development Minister and Industry and Entrepreneurship Development Minister, received Cabinet approval and will be implemented gradually from 2026 through 2029.