The Cabinet of Ministers has approved a four‑year plan to gradually remove the import cess tax imposed on selected goods, beginning in 2026 and continuing until 2029.
The decision aims to reduce production costs, enhance the competitiveness of Sri Lankan exports in international markets, and support industrial growth.
According to the government, continuous imposition and expansion of the cess tax and other non‑customs import duties had raised costs for intermediate inputs, thereby weakening the competitiveness of local products abroad and slowing export‑led economic growth.
The phased removal is designed to:
- Lower production costs and improve export competitiveness.
- Support industrial development and value addition.
- Facilitate trade and ensure equal competitiveness for all stakeholders.
- Align Sri Lanka’s trade practices with internationally accepted policies under the World Trade Organization.
The plan covers goods imported under 2,634:7 Harmonized System classification codes.
The joint proposal was presented by President Anura Kumara Dissanayake, in his capacity as Minister of Finance, together with the Minister of Industries and Enterprise Development, and received Cabinet approval. (Newswire)