ECONOMYNEXT – Sri Lanka is looking at options for allowing personal purchases from online retailers like AliExpress, without making it an avenue for revenue leakage for commercial quantities, Treasury Secretary Harshana Suriyapperuma said.
Many counties allow small personal purchases to come by post without import duties and lengthy customs procedures through a process known as ‘de minimis.’
Some countries have limits such as 100 dollars or 150 dollars for such online or other imports bought by individuals abroad under a rule called de minimis.
In the US it is 800 dollars. In Sri Lanka it had been allowed as a de facto custom for many years.
“We are looking at options to be proposed to us,” he told reporters Sunday. “I am sure Customs had to intervene due to the abuse by certain groups the benefit provided to people.
“As suggested, some countries have thresholds, within those thresholds, there are mechanisms to deal with it.
“So, we are also looking at options. We are positively looking at suggestions we are getting.”
Secretary Suriyapperuma said data customs was trying to stop revenue leakages. Sri Lanka was in a difficult situation with forex shortages and was just recovering, he said.
Information was being collected on groups who have imported commercial quantities.
AliExpress stopped its cheap shipping option, where orders are consolidated and sent to Sri Lanka. As a result and now people have to pay express courier charges.
A computer key cap that is delivered free of shipping in ASEAN nations like Korea and Singapore now costs 17,000 rupees to ship to Sri Lanka.
A suggestion by a government minister that the Customs started taxing the goods by HS code to ‘protect’ domestic producers and eliminate competition had led to an online backlash and the public is well aware of how domestic businesses who are not export competitive exploit the public through import duties.
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Sri Lanka’s domestic industries, have a history of lobbying politicians – especially after 2004 – to raise import duties and ‘para tariffs’ and also licensing in extreme cases to block competition, rob economic freedoms of the weakest in society and overcharge them with higher than world prices to make easy money.
The worse such case are found in basic foods.
The unlike Value Added Tax which is revenue measure applied all businesses whether local or foreign, domestic producers pocket difference between the selling price and the import duty, in a process known as ‘tax arbitrage’ as they do not pay the import duty to the government.
Some countries that allow de minimis imports charge VAT.
Sri Lanka’s action against AliExpress came shortly after US President Donald Trump halted ‘de minimis’ purchase to hit China and Hong Kong. (Colombo/July06/2025)