Sri Lanka is poised to introduce a comprehensive e-commerce policy within the next two weeks – a move aimed at resolving the widespread confusion and logistical challenges currently affecting online imports, particularly from platforms like AliExpress and Temu, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe told The Sunday Morning.
Amid significant public criticism and a growing backlog of parcels at Customs, Abeysinghe stated: “For several years, Sri Lanka Customs had informally permitted e-commerce packages under 1 kg to be subjected to a flat, lower tax rate. However, this system lacked a formal legal basis.”
He said that under existing Sri Lankan law, all imports must be declared under their correct Harmonised System (HS) code with the appropriate tariff applied.
“Customs recently realised that e-commerce imports, especially through platforms like AliExpress and Temu, had increased significantly, and in many cases, the Business-to-Consumer (B2C) channel was being misused for Business-to-Business (B2B) imports,” Abeysinghe explained.
This misuse, evident in both the volume and nature of goods, had led Customs to discontinue the informal flat-rate system in April and enforce the proper regulatory framework.
However, Opposition figures, including Samagi Jana Balawegaya Member of Parliament Dr. Harsha de Silva, have criticised the Government for the resulting disruption.
Deputy Minister Abeysinghe acknowledged these challenges, noting that platform providers struggled to declare each item individually under its correct HS code, leading to substantial backlogs.
In some instances, platforms reportedly applied the highest possible tax rates in the absence of clear guidance, further exacerbating the issue for consumers.
“Within the next two weeks, the Government will issue a new regulation to streamline the process,” Abeysinghe confirmed, outlining the immediate plan to alleviate the current bottlenecks.
He emphasised that this regulation was part of a broader commitment to developing a comprehensive e-commerce policy for the nation.
“Our aim is to regulate the sector properly while also making it user-friendly for consumers and fair for businesses.”