Business

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

Published

9 months ago

2025/07/11

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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Business

SLT-MOBITEL turnaround signals new era for SOEs, says deputy minister

Published

60 mins ago

2026/03/30

Thilina Walpola

The panel discussion led by Deputy Minister of Digital Economy Eng. Eranga Weeraratne (centre) with SLT MOBITEL’s top management Pic by Nishan S. Priyantha

The era of privatising loss-making state-owned enterprises may be drawing to a close, with SLT-MOBITEL emerging as proof that strategic management can deliver profitability without a change in ownership, Deputy Minister of Digital Economy Eng. Eranga Weeraratne said.

“There was a massive public outcry asking the previous governments to sell the loss-making state-owned enterprises. Now it is not there as it was used to be heard,” Weeraratne said. “SLT-MOBITEL has proven that the proper management strategy can turn any loss-making SOE into profit. Gone are the days we heard ‘sell, sell, sell’.”

The remarks came as Sri Lanka’s national ICT provider reported a decisive financial turnaround in FY 2025, driven by disciplined cost management, operational efficiency, and steady growth across fixed and mobile businesses.

The company has simultaneously rolled out a pioneering 24/7 operational model – the industry’s first – with 14 Outside Plant Maintenance Centres operating round-the-clock in metro areas, Kandy, and Jaffna to ensure uninterrupted connectivity.

“Our strong financial results reflect the resilience of SLT-MOBITEL and the trust customers place in us,” said Dr. Mothilal de Silva, Chairman, SLT Group. “With the roll-out of the 24/7 OPMC operations, we are raising the bar for service reliability.”

SLT-MOBITEL has also made 5G publicly available in Sri Lanka and continues to support the Ministry of Digital Economy with secure data centre infrastructure, reinforcing its role as a catalyst of national development.

By Sanath Nanayakkare

Business

Kia Tasman arrives in Sri Lanka: A pickup built for work and comfort

Published

60 mins ago

2026/03/30

Thilina Walpola

Kia Motors Lanka has launched the all-new Kia Tasman, the brand’s first-ever pickup truck – engineered to redefine the double cab segment by combining rugged capability with SUV-like refinement.

Built on a robust body-on-frame platform, the Tasman offers best-in-class strength with a payload capacity of 1,151kg, towing up to 3,500kg, and water wading up to 800mm. Advanced 4WD systems and terrain modes ensure unmatched off-road performance.

Inside, the cabin surprises with best-in-class rear legroom, sliding and reclining rear seats – a segment-first – and a panoramic display with premium Harman Kardon sound.

“This is a vehicle conceived without compromise,” said Kia Motors Lanka Chairman Mahen Thambiah. “For customers who demand durability, capability, and everyday comfort, the Tasman delivers on every front.”

Business

Chief Risk Officers rise globally to drive smarter risk-taking while Sri Lanka’s boardrooms remain silent

Published

1 hour ago

2026/03/30

Thilina Walpola

As geopolitical tensions, economic volatility, and technological disruption reshape global markets, the Chief Risk Officer (CRO) is emerging as a strategic pillar in boardrooms worldwide. In Sri Lanka, however, the role remains largely absent.

Once confined to major banks, the CRO is now gaining traction across industries including finance, logistics, technology, and manufacturing. According to the 2025 Global Risk Survey by EY, nearly 78% of organisations now place risk management at the heart of strategic planning, signalling a shift from reactive crisis management to proactive risk leadership.

The CRO is tasked with identifying and preparing for threats to financial stability, operations, reputation, and compliance – ranging from cyberattacks and supply-chain disruptions to regulatory shifts and climate risks. “The CRO is no longer just the person who says ‘no’ to risky decisions,” a Singaporean banking executive said. “Today, the CRO helps companies take smarter risks and build resilience.”

The role’s growing importance will be highlighted at the upcoming Chief Risk Officer Conference (20–21 May 2026 in Singapore), organised by the Asian Bankers Association in partnership with Trueventus. Key topics include AI-driven risk modelling, geopolitical shocks, and ESG integration.

For Sri Lankan firms where risk functions are often distributed across finance, compliance, and audit – the rise of the CRO offers a clear signal. As an Indian risk consultant noted, “Companies today don’t just compete on profits. They compete on how well they manage uncertainty.”

By Sanath Nanayakkare