The Committee on Public Finance (CoPF) has approved higher Special Commodity Levies (SCL) on imported big onions and potatoes, while issuing far-reaching directives to overhaul the country’s tariff regime and strengthen excise duty enforcement.
The levy on imported big onions was raised by Rs. 10 per kilogram, from Rs. 40 to Rs. 50, and the levy on imported potatoes increased by Rs. 20 per kilogram, from Rs. 60 to Rs. 80, effective 26 August 2025.
Officials acknowledged that although the Special Commodity Levy was initially designed as a temporary measure, it remains a key tool to protect domestic agriculture.
However, the COPF underscored the need for a sustainable, simple, and transparent tariff structure, consistent with Sri Lanka’s National Tariff Policy.
It instructed the Ministry of Trade and Ministry of Finance to conduct a comprehensive review of the country’s tariff system, including the planned transition to a four-band import duty framework and the gradual phase-out of para-tariffs such as SCL and CESS between 2027 and 2030. A detailed progress report is expected by March 2026.
Beyond tariff measures, the committee urged the Department of Agriculture to launch a national project promoting high-yield cultivation kits for big onions within five years.
The initiative is to be integrated with temperature-controlled storage, buy-back schemes, and futures contracts to minimise post-harvest losses and stabilise farmer income.
The CoPF approved new regulations under the Excise Ordinance to curb tax evasion and boost duty collection from liquor manufacturers. Under these rules, production by non-paying manufacturers will be suspended after 30 days, with distribution and sales halted after 90 days.
It also noted that the existing 3% monthly penalty on unpaid duties has proven ineffective, calling for stronger recovery mechanisms under the Excise Act.
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