Sri Lanka Customs is confident that it will be able to exceed last year’s revenue of Rs.970 billion in 2024 with a whopping Rs. 1.5 trillion as increased Value Added Tax (VAT) coupled with lifted import restrictions since October 2023 (except for several motor vehicle import restrictions) are in place this year, The Daily Morning Business learns. 

Speaking to The Daily Morning Business, the SL Customs Media Spokesperson Seevali Arukgoda said: “It is certain that we (Sri Lanka Customs) will be able to surpass the previous year’s revenue which would, however, depend on local demand.”

Meanwhile, the Customs revenue collected for 2023 was 138% higher than that of 2022 and the 2023 revenue marks the highest annual total in its history. 

The Daily Morning Business inquired whether the revenue of the Sri Lanka Customs increased upto pre-pandemic level as a result of the increased VAT which Arukgoda responded otherwise, saying “not pre-pandemic levels, because that included motor vehicle imports.”

However, he emphasised that there will be a substantial increase compared to 2022 (not 2023).

Arukgoda noted that the Customs have not yet conducted any calculation or analysis of the percentage of revenue increase with the increased VAT. 

At the same time, despite the VAT rates have been increased, the Customs is not sure of the volume of goods that will be imported.Therefore, no forecast in that regard cannot be given. 

Per the Customs, it earned its highest-ever monthly revenue in October last year which was Rs.109 billion. Accordingly, the total revenue in the first 10 months of 2023 added up to Rs.760 billion.

Speaking to The Daily Morning Business in November 2023, Arukgoda pointed out that if the trade volume increases the way the Customs expects after the import restriction relaxation, it should be able to go beyond the targeted revenue.

Moreover, the vehicle imports is equivalent to 25% of its usual revenue collection, Arukgoda added.