IntelScoops

Colombo, August 4, 2025 — In response to challenges faced by small-scale importers and local entrepreneurs due to recent changes in e-commerce taxation and customs procedures, the Sri Lankan government has introduced a series of support measures aimed at sustaining these businesses during the transition.

The shift to Harmonized System (HS) code-based taxation for products imported through online platforms such as AliExpress, Amazon, and Temu caused initial disruptions, including delays in customs clearance and increased costs. Small businesses, which rely heavily on e-commerce for sourcing affordable goods, were disproportionately impacted.

Recognizing the vital role these enterprises play in the national economy, authorities convened a special committee tasked with formulating temporary relief and long-term regulatory strategies. Following its recommendations, the government has implemented the following key initiatives:

Streamlined Customs Processes: Simplified documentation and faster clearance procedures have been introduced to reduce delays, enabling small importers to receive goods promptly. Temporary Tax Relief Measures: To ease financial burdens, certain low-value shipments have been granted temporary exemptions or reduced tax rates while the regulatory framework is refined. Capacity Building and Training: Workshops and informational campaigns are being conducted to help small business owners understand new customs requirements and compliance procedures. Digital Infrastructure Enhancements: Investments are underway to modernize customs and tax administration systems, facilitating smoother e-commerce transactions and better tracking of imports.

Officials emphasize that these measures aim to balance effective tax collection with the growth and sustainability of local businesses. “Small-scale importers are critical contributors to Sri Lanka’s economy, employment, and consumer choice,” said a government spokesperson. “Our policies strive to create a supportive environment where they can thrive alongside evolving trade regulations.”

Industry representatives have welcomed the steps but stress the need for continued engagement and adaptive policies as e-commerce continues to expand.

The government’s proactive approach highlights its commitment to nurturing a dynamic and inclusive digital economy, ensuring that reforms benefit all stakeholders.