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‘Don’t drive away what’s helping consumers’, Advocata pushes for checkout tax reform

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Thousands of parcels ordered by Sri Lankans from popular e-commerce platforms like TEMU, AliExpress, and eBay are now stuck at customs, caught in a legal grey zone that’s choking the flow of goods. Advocata Institute warns ensuring consumer choice through a competitive market is key to delivering reasonable prices and better quality for Sri Lankans.

Without a modern legal framework enabling e-commerce platforms to collect taxes at the point of sale, the country faces worsening customs delays, supply chain bottlenecks for small businesses, and the loss of millions in potential government revenue, disrupting consumer choice. Sri Lanka’s already complicated tariff system only compounds the problem, making it harder for importers and customs officials alike to navigate duties and clearances efficiently.

Until June, incoming parcels were taxed under an informal “per kilo” system, where agents declared goods as personal effects and paid a flat fee. This unofficial arrangement was manageable until a surge in cross-border shipments, driven by platforms like TEMU, AliExpress and eBay, overwhelmed the system.

In response, customs scrapped the workaround informing the public that they are now using the “correct” instrument. Tax is now levied at the level of individual items. Every parcel’s contents must be individually declared by HS Code to customs. At current volumes, this is impossible.

The result translates into severe backlogs, consumer frustration, and growing pressure on customs officers. SMEs are also suffering as they often source critical inputs from these platforms.

The core problem is legal and tariff complexities: Sri Lanka lacks the legislation to enable e-commerce platforms to act as tax intermediaries. In contrast, countries such as Singapore and Australia have modernised their tax codes to allow foreign vendors to collect and remit taxes upfront before goods even leave their warehouse.

What’s the solution?

Sri Lanka’s current tariff system is notoriously complex, with a maze of duties , levies and exemptions that make customs clearance both time consuming and unpredictable. This complexity creates uncertainty for importers and increases the administrative burden on custom authorities. This also leads to an uneven playing field , where arbitrary exemptions and discretionary application of rules result in unfair advantages for a few at the expense of others.

Advocata recommends adopting a Vendor Collection Model, where platforms collect and remit taxes at the point of sale. This model is used globally and offers several advantages:

● Efficiency: removes the need for HS code classification at customs.

● Fairness: exempts low-value goods through a clear de minimis threshold (e.g. USD 75).

● Accountability: only high-volume platforms (e.g. >10,000 parcels/month) must comply.

● Compliance: platforms register locally or appoint a tax representative.

Why act now?

This is not just about revising tariff rates, it’s about fixing how we collect taxes. Relying on HS code based tariff enforcement at the border for thousands of small parcels is not just impractical, it risks driving e-commerce platforms away altogether. Without reform, parcel delays will worsen, customs will choke, and public revenue will continue leaking all while e-commerce grows.

Allowing e-commerce platforms to operate and expand is ultimately about protecting consumer choice, ensuring trade integrity, and state revenue. As these platforms widen access to goods, they empower consumers with greater choice, driven by the economics of the long tail. This expands variety, coupled with increased competitive pressure, delivers tangible benefits to consumers including lower prices, faster innovation, and greater convenience. Inaction risks undermining these gains.



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Mattala Wildlife Unit to boost revenue, tourism and investor confidence

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Dignitaries at the MOU signing ceremony.

The launch of a dedicated wildlife unit at Mattala Rajapaksa International Airport is expected to deliver significant economic benefits by improving aviation safety, strengthening eco-tourism and enhancing Sri Lanka’s investment appeal, Wildlife Conservation Department Director General Ranjan Marasinghe said.

Speaking at the signing of a Memorandum of Understanding between the Department of Wildlife Conservation and Airport and Aviation Services (Sri Lanka) Limited, Marasinghe said the initiative links conservation directly with national development and revenue generation.

“This is more than an administrative step—it is a forward-looking initiative that aligns conservation, aviation safety and national development in a single strategic effort,” he said.

He noted that wildlife management at airports is globally recognised as essential for reducing bird strikes and wildlife-related disruptions, which can lead to costly repairs, delays and operational losses.

By proactively managing such risks, the Mattala Wildlife Unit is expected to lower potential costs for airlines and airport operators while improving efficiency and confidence among carriers considering future operations.

Marasinghe said the airport’s proximity to premier tourism destinations such as Yala National Park and Udawalawe National Park, together with marine tourism opportunities including Blue Whale watching, gives Mattala a strong commercial advantage.

“This convergence of aviation and wildlife tourism creates an extraordinary opportunity,” he said, adding that the airport has the potential to become a major gateway for high-value eco-tourism.

Industry observers note that wildlife tourists generally spend more on guided safaris, hotels, transport and local experiences, generating stronger foreign exchange earnings and employment opportunities for surrounding communities.

Marasinghe said integrating environmental standards into airport operations would also improve Sri Lanka’s global image at a time when investors and international travellers increasingly value sustainability.

“By integrating environmental considerations into airport operations, we position Sri Lanka more favourably on the global stage, demonstrating that we are a nation committed to sustainability, responsibility and innovation,” he said.

He expressed hope that the Mattala model would be replicated at other international airports, creating long-term savings, stronger environmental governance and wider economic returns.

The Director General said the Department of Wildlife Conservation remains committed to supporting the national economy through new and meaningful avenues while protecting Sri Lanka’s natural assets.

“Conservation must also contribute to development,” he said, stressing that protecting biodiversity and generating growth can go hand in hand.

By Ifham Nizam

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Aitken Spence Elevators and CINEC usher in a new era for Sri Lanka’s elevator industry

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Aitken Spence Elevators, in collaboration with CINEC Campus, recently held the Certificate Awarding Ceremony for the latest batch of trainees of the Elevator Serviceman Course at the Elevator Training Centre (ETC). The graduates were awarded their NVQ Level 3 certifications, marking a significant milestone in their professional journey within Sri Lanka’s vertical transportation industry.

The certification programme was developed in partnership with the National Apprentice and Industrial Training Authority (NAITA) and the Ministry of Vocational Training & Skills Development, ensuring trainees received industry-recognised qualifications, alongside strong practical competencies. The ceremony was attended by directors of both Aitken Spence and CINEC Campus, as well as staff members, lecturers, and invited guests of the graduating students

Anuka Prashan Pieris was recognised as the Most Outstanding Student of the batch in appreciation of his exceptional performance and commitment throughout the programme. The Elevator Training Centre plays a vital role in addressing the growing demand for skilled elevator service technicians through structured training and hands-on learning. The facility features Sri Lanka’s first Elevator Training Tower, offering trainees practical exposure aligned with both local and international standards.

All graduates of the current batch have already commenced their careers as technicians and supervisors at Aitken Spence Elevators. Their seamless transition into the workforce reflects the programme’s strong emphasis on developing job-ready professionals capable of contributing effectively from day one.

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Sterling Steels wins Merit Award at SLIA Annual Product Awards 2026

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COLOMBO, SRI LANKA– Sterling Steels (Pvt) Ltd, a premier manufacturer of high-quality globally renowned steel roofing & cladding, announced it has been honored with a prestigious Merit Award at the Sri Lanka Institute of Architects (SLIA) Annual Product Awards 2026. The national recognition was awarded in the highly competitive Zinc-Aluminium Coated Profile Steel Sheet category, underscoring the company’s dedication to excellence, innovation, and superior quality in the Sri Lankan construction industry.

The award was presented during a grand ceremony held at the esteemed Nelum Pokuna Theatre, a key event in the nation’s architectural and construction calendar. The SLIA Annual Product Awards are widely regarded as a benchmark for quality and design excellence, with products rigorously evaluated by a panel of distinguished architects and industry experts. Receiving this Merit Award positions Sterling Steels among the top-tier suppliers of building materials in the country.

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