IntelScoops

Colombo, August 4, 2025 — Concerns surrounding the taxation of products purchased through popular e-commerce platforms such as AliExpress, Amazon, and Temu have been resolved, officials confirmed following a meeting of the Committee on Public Finance in Parliament.

According to statements from officials present at the session, normal operations have resumed after earlier delays linked to the reintroduction of tax calculations based on Harmonized System (HS) codes. The Department of Communication of Parliament noted that these adjustments had previously caused significant disruptions in customs clearance processes.

The issue arose when local authorities switched to imposing taxes on imported products via e-commerce according to HS codes, leading to delays and increased costs for consumers. The rise in taxation costs reportedly discouraged some global e-commerce websites from selling to Sri Lankan customers, further complicating the situation.

In response, the Cabinet of Ministers approved the formation of a special committee last month to propose temporary monitoring relief for e-commerce transactions and to recommend a long-term regulatory framework. The initiative, presented by the President in his role as Minister of Finance, involves officials from Sri Lanka Customs and other relevant agencies tasked with streamlining taxation and customs procedures.

“The rapid growth of online transactions in Sri Lanka necessitated prompt action to create an efficient and transparent regulatory environment for e-commerce,” a government official said.

While amendments were made to customs clearance methods to better collect taxes, these changes initially disrupted imports and increased costs, disproportionately affecting small-scale importers and local businesses working with e-commerce platforms.

Officials have assured the public that these challenges have now been addressed, and customs operations related to e-commerce imports are proceeding smoothly without significant delays.

This development marks an important step in balancing tax compliance with the needs of a growing digital economy in Sri Lanka.