Local industry groups are urging comprehensive reform of Sri Lanka’s cross-border e-commerce framework, warning that policy gaps and Customs loopholes are enabling tax evasion, distorting the market, and threatening legitimate businesses. The unregulated activity cost Sri Lanka’s Treasury around Rs. 50 million in tax revenue daily, the groups pointed out.
Chairman of the Global Shippers Forum Sean Van Dort said that despite public claims of cracking down on imports from platforms such as Temu and AliExpress, authorities have not curbed such activity.
“There has been much talk about stopping imports from Temu and AliExpress, but in reality, these e-commerce operations continue,” Van Dort said. “Customs has only recently begun charging duties correctly under proper HS codes. Where were these taxes paid before? Which government collected this revenue? It has gone into someone’s pocket,” he alleged, adding that these platforms also lack systems for customers to return goods.
Courier Express Parcel Association of Sri Lanka (CEPAC) Vice President Sanjay Samarasinghe commended Sri Lanka Customs for introducing Harmonised System (HS) codes, calling it a significant step forward. However, he stressed that more needs to be done to align Customs procedures with international standards.
“How can T-shirts be imported at prices lower than what it costs to produce them locally?” Samarasinghe asked. “Can these e-commerce platforms produce proper Customs declarations, invoices, match and reconcile the figures? Where is this revenue going?”
He alleged that tens of thousands of parcels were being cleared daily without proper documentation, including high-value medical equipment disguised as personal imports to avoid regulatory scrutiny.
Samarasinghe also pointed to the absence of a structured e-commerce policy and a functioning ‘de minimis’ threshold, calling for a standardized system to ensure transparency and revenue collection.
Yasodaran Paramanantham, former President of the Sri Lanka Apparel Brands Association, said weak border controls have resulted in a flood of low-quality apparel imports, undermining the local apparel market. He estimated losses to the Treasury at around Rs. 50 million and warned that without stronger Customs enforcement, the domestic manufacturing sector could face severe setbacks. (Newswire)
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