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Sri Lanka Streamlines Customs Bonded Warehouse Framework

The Sri Lankan Cabinet of Ministers has approved a revised policy framework governing Customs Bonded Warehouses (CBWs). This move aims to modernize the sector and enhance its competitiveness within the evolving global supply chain landscape.

The new framework, empowering the “Revised and Updated Policy Framework for Appointing Common Bonded Warehouses,” addresses the critical role of CBWs in safeguarding imported goods before duties are paid and their final distribution. Previously governed by Section 69 of the Customs Ordinance, the appointment of these facilities rested with the Finance Minister based on recommendations by the Director-General of Customs.

Recognizing the need for adaptation in the face of rapid technological advancements and changing industry dynamics, the revised framework acknowledges the need to adjust the mandatory minimum space requirements for common bonded warehouses. This revision is expected to foster greater flexibility and cater to the evolving needs of the logistics sector.

The proposal, championed by President Ranil Wickremesinghe in his role overseeing Finance, Economic Stabilization, and National Policies, was approved during a recent Cabinet meeting. This initiative signifies the government’s commitment to modernizing the country’s trade infrastructure and bolstering its position within the global supply chain network.