Thursday Oct 23, 2025
Thursday Oct 23, 2025
Thursday, 23 October 2025 01:28 - - {{hitsCtrl.values.hits}}
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| CoPF Chair SJB MP Dr. Harsha de Silva |
The Parliament Secretariat yesterday said the Committee on Public Finance (CoPF) has approved higher Special Commodity Levies (SCL) on imported big onions and potatoes while issuing sweeping directives to reform Sri Lanka’s tariff regime, strengthen excise duty enforcement, and improve agricultural productivity.
The levy on imported big onions was raised by Rs. 10 per kilogram, from Rs. 40 to Rs. 50, and the levy on imported potatoes increased by Rs. 20 per kilogram, from Rs. 60 to Rs. 80, effective 26 August 2025.
The move aims to ensure fair prices for local farmers during the 2025 Yala season.
Officials acknowledged that although the SCL was originally meant to be phased out, it continues to be used to protect local producers.
However, COPF emphasised that Sri Lanka’s tariff structure must be sustainable, simple, transparent, and predictable.
The committee instructed the Ministry of Trade and the Ministry of Finance to align existing laws with the National Tariff Policy and conduct a full assessment of the planned shift to a four-band import duty system and the gradual phase-out of para-tariffs, including SCL and CESS, between 2027 and 2030.
A progress report was requested by March 2026.
To reduce dependence on temporary tariff protection, COPF recommended that the Department of Agriculture implement a national project to promote high-yield cultivation kits for big onions across all growing regions within five years.
The initiative should form part of a broader strategy incorporating temperature-controlled storage, buy-back schemes, and future contracts to reduce post-harvest losses and stabilise farmer income.
In addition, COPF approved new rules under the Excise Ordinance to tighten enforcement and improve duty collection from liquor manufacturers. Under the revised regulations, production by non-paying manufacturers will be suspended after 30 days and all distribution and sales halted after 90 days.
The committee noted that the existing 3% monthly penalty on unpaid duties has been insufficient due to weak recovery mechanisms in the Excise Act.
