The Committee on Public Finance (COPF) has approved the government’s move to increase the Special Commodity Levy (SCL) on imported big onions and potatoes to ensure a fair price for local farmers during the 2025 Yala season.
The decision, taken at a COPF meeting chaired by MP Harsha de Silva on Tuesday (21), raises the SCL on one kilogram of imported big onions by Rs. 10, from Rs. 40 to Rs. 50, and on imported potatoes by Rs. 20, from Rs. 60 to Rs. 80, effective from August 26, 2025.
While the SCL was initially expected to be phased out, the committee noted that it continues to serve as a protective tool for local producers despite the risk of misuse.
The COPF issued broader directives to the Ministry of Trade and the Ministry of Finance to align existing laws with the National Tariff Policy to ensure a sustainable, transparent, and predictable tariff structure. The committee further instructed the ministries to evaluate the impact of proposed tariff regime changes, including the shift to a four-band import duty and the gradual phase-out of Para tariffs such as SCL and CESS between 2027 and 2030, and submit an update by March 2026.
To strengthen agricultural productivity, the COPF recommended that the Department of Agriculture introduce high-yield technique kits for big onion cultivation, aiming for nationwide coverage within five years. It also advised incorporating storage and market-stabilizing measures, such as humidity and temperature-controlled warehouses, buy-back agreements, and futures contracts, to reduce post-harvest losses.
Meanwhile, the committee also reviewed and approved new rules under the Excise Ordinance (Chapter 52) concerning liquor production.
The new regulations will suspend the operations of producers who fail to pay excise duty within 30 days and ban distribution or sale after 90 days, addressing weaknesses in the current recovery process, which relies only on a 3 per cent interest penalty for unpaid fees.
Deputy Ministers Chathuranga Abeysinghe, Nishantha Jayaweera, and Arkam Ilyas, along with MPs Rauff Hakeem, Harshana Rajakaruna, Nimal Palihena, Chithral Fernando, Wijesiri Basnayake, Thilina Samarakoon, Champika Hettiarachchi, and Lakmali Hemachandra, participated in the meeting.
Officials from the Ministry of Trade, Commerce, Food Security and Co-operative Development, including Secretary K.A. Vimalenthirarajah, and representatives from the Department of Trade and Investment Policy and the Excise Department, were also present. (Newswire)