News

Lankans will have to pay more to send postal packages to EU member countries

Published

5 years ago

2021/07/4

Sahan Weerasooriya

Following imposition of revised tax policy

by Suresh Perera

With the European Union (EU) revising its tariff regime on postal shipments with effect from July 1, all postal packages up to EUR 150 (approximately Rs. 35,500) in market value mailed from Sri Lanka to any of the 27 member countries in the economic and political grouping will be subject to direct Value Added Tax (VAT).

The new tax policy will not be applicable to letters sent to EU member states, Post Master General (PMG) Ranjith Ariyaratne clarified.

However, postal customers, online sellers and marketplaces, which send items within the specified EUR 150 value will be liable to VAT, he said.

Postal goods that exceed the stated value will be subjected to other customs regulations as determined by the relevant government in addition to the VAT policy of the EU member country, the PMG explained.

He said that all applicable customs duties on postal items exceeding EUR 150 in value will be charged from the recipient of postal item/items at the destination.

Asked how the VAT component could be paid directly to the EU member country concerned, Ariyaratne said the payment can be done by registering online.

Customers can obtain all information about the tax policies, payment options and the procedures to be followed in terms of the relevant laws and regulations by accessing the relevant web links. (See below)

He said that customers should be aware of these policies, regulations and updates by referring to the web links before handing over their items to postal counters for onward delivery.

Asked on what basis the values on postal packages are calculated for taxation, the PMG said there is a variance depending on the category.

“The tax is applicable even to a personal gift item sent from Sri Lanka to a person living in any EU member country”.

All postal customers, including online retailers and online marketplaces, are required to provide the Import One Stop Shop (IOSS) ID Number with the parcel/postal item at the post office counter, to ensure smooth customs clearance and timely delivery of the goods to the destination.

In the event of non-compliance with applicable tax policies, the destination country reserves the right to add relevant taxes including VAT and other import tariffs. In addition, the recipient may have to pay an extra clearance fee according to the import rules and regulations of the destination country.

Additional charges at the time of import may cause the customer to refuse the goods. The customer is responsible for any further action taken by the Postal Administration or the Customs in respect of the relevant product.

The Sri Lanka Postal Department is not responsible for the imposition and collection of VAT or any other tax levied by the EU countries, the PMG stressed.

More information on the revised EU tax policy can be obtained by visiting the following web links:

https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm

https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-introduction_en

https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-legislation_en

https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en

https://ec.europa.eu/vat-ecommerc

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News

Cabinet approves construction of new 300 bed Base Hospital in Deniyaya

Published

5 hours ago

2026/02/18

Priyan

The Cabinet of Ministers approved the resolution forwarded by the Minister of Health and Mass Media to relocate the Deniyaya Base Hospital after constructing a new hospital with a capacity of 300 beds at an estimated cost of Rupees 6,000 million.

The Southern Provincial Department of Health has acquired a plot of land in Handford estate which is approximately 03 kilometres away from the town for this purpose.

News

Cabinet nod to legally empower methodology for implementing the ‘Praja Shakthi’ poverty alleviation national movement

Published

6 hours ago

2026/02/18

Priyan

The Cabinet of Ministers granted approval for the resolution furnished by the Minister of Rural Development, Social Security and Community Empowerment to instruct the Legal Draftsman to draft a bill to legally empower the implementation of ‘Praja Shakthi’ (Strength of the Community) poverty alleviation national movement

News

NPP not under Indian pressure to hold PC polls – JVP

Published

6 hours ago

2026/02/18

Sahan Weerasooriya

Tilvin Silva

…preliminary work started on new Constitution

JVP General Secretary Tilvin Silva yesterday (17) maintained that the NPP government was not under Indian pressure to hold the long delayed Provincial Council elections.

The top JVP official said so appearing on Sirasa Pathikada, anchored by Asoka Dias. Tilvin Silva said that neither the devolution nor terrorism issues had been discussed during his meeting with External Affairs Minister Dr. S. Jaishankar and Deputy National Security Advisor Pavan Kapoor, in New Delhi. This was Tilvin Silva’s first visit to India.

Declaring that politics hadn’t been on the agenda, the JVPer said that the Indian focus was entirely on economic development and technology.

The JVP General Secretary visited India under the Indian Council for Cultural Relations’ (ICCR) Distinguished Visitors Programme from 5-12 February 2026. General Secretary Silva was accompanied by Kitnan Selvaraj, MP, Ilankumaran Karunanathan, MP, JVP Central Committee Member Janaka Adhikari, JVP’s Media Unit Head Hemathilaka Gamage and Member of JVP’s International Relations Department Kalpana Madhubhashini. The delegation visited New Delhi, Ahmedabad and Thiruvananthapuram.

Responding to another query, Tilvin Silva said that Dr. S. Jaishankar had reiterated that India would always remain a true and trusted partner for Sri Lanka, in accordance with its ‘Neighbourhood First Policy’ and Vision ‘MAHASAGAR.’

Referring to the second JVP insurrection in the late 1980s, the JVPer claimed that they had not been against India but responded to the actions of the then Indian government.

Sri Lanka enacted the 13th Amendment to the Constitution in the wake of the Indo-Lanka peace accord of July 1987 to pave the way for Provincial Councils.

Tilvin Silva said that since they came to power, Indo-Sri Lanka relations had changed. “India has realised we could work together,” he said.

The JVP official said that preliminary work was underway, regarding the formulation of a new Constitution. The abolition of executive presidency and creation of an Office of President sans executive powers, too, would be addressed, he said, adding that the strengthening of the legislature was the other issue at hand.

Pointing out that the NPP had 2/3 majority in Parliament and could introduce a new Constitution on their own, Tilvin Silva said that they intended to obtain views of all and study the past processes in a bid to secure consensus. The JVP, as the party that campaigned against the introduction of executive presidency, way back in 1978, would lead the current effort to do away with the existing Constitution, he said.

Tilvin promised that they would implement what was in their manifesto.

The interviewer also raised the issue of abolishing the pensions for ex-Presidents. Tilvin Silva said that the Supreme Court, too, had approved the move to abolish pensions to ex-MPs. Therefore there was no issue with that, however, the ex-Presidents pensions couldn’t be done away with as they were made through the Constitution. That would be addressed when the government introduced a new Constitution in consultation with other stakeholders.

By Shamindra Ferdinando