Sri Lanka Customs exceeds May revenue target by 16%

Sri Lanka Customs exceeded its revenue target for May by 16 per cent, while total collections for the first five months of the year rose roughly 44 per cent compared to the corresponding period last year.

Official data showed that the revenue collection body brought in Rs. 217.9 billion in May, moving past the established monthly target of Rs. 187.8 billion.

Cumulative data for the first five months revealed that collections reached Rs. 1,143.7 billion, surpassing the five-month target by 44%.

The performance follows a record-setting previous year where Customs generated Rs. 2,551 billion, beating a revised goal of Rs. 2,241 billion and marking a 64.2% jump from the Rs. 1,553 billion collected the year prior.

A revenue target of Rs. 2,207 billion stands for the current year—a 13.5% reduction from last year due to an anticipated drop in vehicle imports—with 51.8% of this goal secured within the first five months.

The surge in collections stems primarily from stricter enforcement, better valuation methods, and a recovery in import volumes following a multi-year contraction.

Imports dropped dramatically after the 2022 economic crisis when the state introduced restrictions to safeguard foreign currency reserves.

Collections from import duties, excise taxes, and additional levies expanded alongside stabilising reserves, the easing of specific import bans, and recovering consumer demand.

Enhanced monitoring against under-invoicing and fraudulent goods declarations further lifted state income, officials noted.

The combination of growing import traffic, exchange rate shifts, and rigorous enforcement turned Customs into a primary revenue stream for the Treasury, supporting state efforts to satisfy fiscal requirements under the IMF-backed program.