Sri Lanka Customs crosses Rs. 1 t mark, beats early 2026 revenue targets

• Outperforms targets by Rs. 133 b, achieves 115% of cumulative target
• Exceeds monthly targets for four months straight on stronger enforcement, trade recovery
• Collects Rs. 2.57 b in vehicle import taxes on 12 May, non-vehicle import collections contribute Rs. 10.72 b

By Charumini de Silva

Sri Lanka Customs has surpassed the Rs. 1 trillion revenue milestone for 2026, marking a strong fiscal performance driven by higher import activity, improved enforcement, and continued recovery in trade volumes.

Customs Spokesman Chandana Punchihewa confirmed that the milestone was reached on Tuesday, noting that cumulative collections had climbed to Rs. 995.8 billion by Monday before crossing the trillion-rupee threshold the following day.

“Sri Lanka Customs maintained its strong revenue momentum in 2026, collecting Rs. 1.009 trillion by 12 May and outperforming Treasury targets by Rs. 133.45 billion,” he told the Daily FT.

The achievement comes within just 132 days of the year, with Customs already exceeding monthly revenue targets for four consecutive months, reinforcing its role as one of the Government’s most critical revenue-generating institutions as fiscal consolidation continues under the International Monetary Fund (IMF)-supported reform program.

Giving a breakdown of the official revenue data as at 12 May, he said Customs had achieved 115% of its cumulative target for the first four and a half months of the year. Against an accumulated revenue estimate of Rs. 875.66 billion for the January to 12 May period, actual collections reached Rs. 1.009 trillion, placing the agency Rs. 133.45 billion ahead of target.

The 2026 original annual revenue estimate for Customs has been fixed at Rs. 2.207 trillion, with monthly targets steadily rising throughout the year. January was set at Rs. 160.24 billion, February at Rs. 165.95 billion, March at Rs. 180.40 billion, April at Rs. 181.27 billion, and May at Rs. 187.80 billion.

Customs opened the year with an exceptionally strong January performance, collecting Rs. 235.28 billion against the monthly target of Rs. 160.24 billion, exceeding expectations by Rs. 75.04 billion and delivering 147% of the target. This strong start gave the institution an immediate lead in accumulated collections.

In February, revenue reached Rs. 215.60 billion, surpassing the target of Rs. 165.95 billion by Rs. 49.65 billion, translating into a 130% achievement. By the end of February, cumulative collections had risen to Rs. 450.88 billion, exceeding the accumulated estimate of Rs. 326.19 billion by Rs. 124.69 billion.

March continued the trend, with collections of Rs. 231.95 billion against a target of Rs. 180.40 billion, generating an excess of Rs. 51.55 billion and achieving 129% of the target. This pushed cumulative collections to Rs. 682.83 billion, Rs. 176.24 billion above the projected Rs. 506.59 billion.

As per the official data, April again delivered strong results. Customs collected Rs. 236.52 billion against the target of Rs. 181.27 billion, beating expectations by Rs. 55.24 billion and recording 130% of the monthly target. By the end of April, cumulative collections had reached Rs. 919.34 billion, exceeding the cumulative estimate of Rs. 687.86 billion by Rs. 231.48 billion, or 134%.

Although collections for the first 12 days of May stood at Rs. 89.77 billion, below the month-to-date estimate of Rs. 187.8 billion and reflecting a shortfall of Rs. 98.03 billion or 48% of the monthly target, the strong overperformance recorded during the first four months kept the agency comfortably above its cumulative target.

Revenue figures for 12 May alone amounted to Rs. 13.29 billion. Of this, Rs. 2.57 billion came from vehicle-related taxes, while general revenue collections accounted for Rs. 10.72 billion, indicating that non-vehicle imports continue to contribute the bulk of Customs income.

With the latest milestone, Sri Lanka Customs has emerged as one of the Treasury’s most important revenue-generating agencies, providing critical fiscal support as the Government continues to operate under IMF-supported economic reforms.

The latest performance builds on a record-breaking 2025, when Sri Lanka Customs collected a historic Rs. 2.551 trillion in revenue, surpassing its revised target of Rs. 2.241 trillion. The 2025 collection represented a 64.2% increase over the previous year’s Rs. 1.553 trillion, highlighting a sharp recovery in trade-related tax income and stronger enforcement under the Government’s fiscal reform agenda.