Sri Lanka Customs revenue has surpassed its January 2026 target within the first 22 days of the month, reflecting stronger import activity, tighter enforcement, and improved valuation practices, according to official data.
Sri Lanka Customs revenue outperforms January target in 22 days
Sri Lanka Customs revenue exceeded its January 2026 target well before the end of the month, underscoring a continued rebound in import activity and enhanced enforcement measures that have strengthened state finances. Official data show that collections in the first 22 days of January reached 175.4 billion rupees, surpassing the full-month target of 160.2 billion rupees.
The early achievement represents a 9.5 percent overshoot of the monthly target, highlighting improved performance by the revenue-collecting agency at a time when fiscal discipline remains central to Sri Lanka’s economic recovery efforts. The outcome also reflects the acceleration of container clearance and customs processing following disruptions caused by Cyclone Ditwah late last year.
Sri Lanka Customs intensified clearance operations from December after cyclone-related disruptions affected routine activities for at least four days in November. The disruptions coincided with higher import volumes in December, prompting authorities to expedite cargo handling to prevent backlogs and revenue losses.
The strong start to 2026 builds on a record performance in the previous year. In 2025, Sri Lanka Customs collected 2,551 billion rupees in revenue, significantly exceeding the revised annual target of 2,241 billion rupees. The figure marked a 64.2 percent increase compared with the previous year’s revenue of 1,553 billion rupees, reflecting a sharp turnaround after years of subdued import activity.
Despite the strong performance last year, the Customs revenue target for 2026 has been set at 2,207 billion rupees, representing a 13.5 percent reduction from the previous year. Officials have attributed the lower target primarily to expectations of a significant decline in motor vehicle imports, which have historically contributed a substantial share of customs revenue.
The recent surge in Sri Lanka Customs revenue has been driven by several structural and cyclical factors. Stronger enforcement, improved valuation practices, and closer scrutiny of import declarations have played a key role in lifting collections. Officials have noted that tighter monitoring of under-invoicing and misdeclaration has reduced revenue leakages, contributing directly to higher intake from import duties, excise taxes, and other levies.
A rebound in import volumes has also supported revenue growth. Following the economic crisis of 2022, Sri Lanka imposed strict import restrictions to conserve foreign exchange, leading to a sharp contraction in trade volumes and a corresponding decline in customs collections. As foreign reserves stabilised and certain import controls were gradually relaxed, trade activity began to recover.
Currency movements and recovering consumer demand have further influenced import behaviour. As confidence improved and supply chains normalised, demand for intermediate goods, raw materials, and selected consumer products increased, generating higher customs revenue across multiple categories.
The combined impact of increased import activity and stricter enforcement has positioned Sri Lanka Customs as one of the leading revenue contributors to the Treasury in 2025. This role has become increasingly important as the government works to meet fiscal targets under an IMF-supported economic adjustment programme.
Revenue performance from Customs provides a critical buffer for the state, particularly as authorities seek to balance expenditure discipline with social and infrastructure needs. Consistent collections help reduce reliance on domestic borrowing and support broader efforts to restore macroeconomic stability.
However, officials caution that sustaining elevated revenue growth will depend on several factors, including global trade conditions, domestic demand trends, and policy decisions related to import liberalisation. The anticipated decline in vehicle imports in 2026 is expected to weigh on collections, making continued improvements in compliance and efficiency essential.
Early January’s outperformance nevertheless signals a positive start to the year for fiscal authorities. If sustained, the momentum in Sri Lanka Customs revenue could provide additional fiscal space and reinforce confidence in the country’s ongoing economic recovery.