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Sri Lanka’s government is facing massive tax revenue losses — estimated at Rs. 35 to 50 million per day — due to a duty evasion scheme tied to courier imports from e-commerce platforms like Temu, industry leaders revealed at a press conference in Colombo this week.
The Controversial “Per Kilogram” Clearance
At the heart of the issue lies a now-suspended “per kilogram clearance” system, which critics argue enabled commercial-scale imports to bypass proper duty payments.
This system allowed packages to be cleared based on weight rather than accurate Harmonised System (HS) code classification and declared value, giving certain importers an unfair advantage over local businesses.
Aramex Country Manager Slams the Practice
Sanjay Samarasinghe, Country Manager and Director of Aramex Sri Lanka, strongly condemned the misuse of the system:
“A group of private parties, with some in Customs, created a process to suit them — the per kg clearance,” he said. “It was not a government tax — it was fraud.”
He pointed out that legitimate importers follow strict customs procedures and pay proper duties based on item category and value. In contrast, goods brought in under the flawed system paid minimal or false charges, hurting local businesses.
“A finished T-shirt is landing in Sri Lanka for less than the cost of its raw fabric,” he said, warning of the crippling impact on domestic garment producers.
Apparel Industry Under Threat
P. Yasotharan, former President of the Sri Lanka Brands Association, stressed that 60% of the 20,000 daily Temu parcels are apparel — and many are commercial imports disguised as consumer purchases.
“These are not personal orders. This is B2B disguised as B2C to avoid duties. That’s fraud,” he said.
He estimated the government has been losing up to Rs. 50 million daily as a result.
“Local SMEs and village factories are shutting down because they can’t compete with these dumped goods,” he warned.
A Call for Fair Play
Both speakers emphasized that their concerns are not anti-e-commerce. Instead, they advocate for a regulated and fair playing field:
Enforce proper customs classification
Set a de minimis value for tax exemptions
Prevent commercial importers from misusing personal parcel routes
They welcomed recent moves by Customs to abolish the per-kg clearance model and urged the government to establish formal e-commerce regulations aligned with global standards.
