Sri Lanka Customs has set a revenue target of 2,207 billion rupees for the current year, marking a 13.5 percent decrease from last year, primarily due to an anticipated significant decline in car imports, according to official data.

The Customs department collected 2,551 billion rupees in revenue in 2025, surpassing its revised target of 2,241 billion rupees for that year. However, the current year’s target is approximately 344 billion rupees lower than the previous year’s achievement.

In 2025, Customs revenue experienced a 64 percent increase compared to the preceding year, driven largely by a surge in vehicle import taxes. Last year, the revenue body generated around 870 billion rupees from vehicle taxes alone. However, it is projected to earn only 266 billion rupees from vehicle import taxes in 2026, a substantial decrease of 69.4 percent compared to last year, as indicated by the official data.

The significant rise in Sri Lanka Customs revenue in 2025 was attributed to enhanced enforcement measures, improved valuation practices, and a rebound in import volumes, particularly of vehicles, following several years of decline. Additionally, the depreciation of the rupee, from 292 in December to 310 against the US dollar, also contributed to inflating customs revenues.

Following the economic crisis of 2022, the country saw a sharp decline in imports due to imposed restrictions aimed at conserving foreign exchange. Officials also highlight that stricter monitoring of under-invoicing and misdeclaration of goods has played a role in boosting state revenue.

(Colombo/January 07/2026)