Sri Lanka Customs, historically criticized for inefficiency and corruption, has recorded a revenue surge this year that starkly contrasts with its 2024 performance.
Official data shows that by the end of November 2025, Customs collected LKR 2,260 billion an astonishing 65.3 percent increase from the LKR 1,367 billion collected during the same period last year.
In November alone, Customs exceeded its monthly target of LKR 210 billion, collecting LKR 245 billion despite operations being partially paralyzed for four days due to Cyclone Ditwah.
Overall, the agency has already surpassed 107 percent of its full-year revenue target of LKR 2,115 billion, set 36 percent higher than 2024’s target.
The contrast with last year is striking. In 2024, revenue growth was moderate, and the agency was often criticized for allowing under-invoicing and misdeclaration of imports to go unchecked.
Experts note that the current surge reflects a combination of stricter enforcement measures, improved valuation practices, and tighter monitoring of goods entering the country.
The rebound in imports after the 2022 economic crisis also plays a key role. Following severe restrictions to conserve foreign exchange, imports had fallen sharply, constraining customs collections.
With stabilizing foreign reserves, relaxation of certain import controls, and growing consumer demand, Customs has been able to tap into previously underreported revenue streams.
Analysts emphasize the magnitude of the year-on-year jump as both remarkable and questionable.
“A 65 percent increase compared to last year suggests that a substantial portion of revenue may have been lost due to inefficiency or malpractice previously,” said a senior economist, noting the historical reputation of the agency.
Currency fluctuations and rising import volumes further contribute to the spike. Import duties, excise, and other levies have all surged, positioning Customs as one of the Treasury’s most important revenue sources in 2025.
While the figures signal progress, they also prompt scrutiny: if such growth is achievable now, critics argue, why was it not realized in previous years?
The sudden turnaround has significant implications for fiscal planning. Customs’ enhanced performance provides a critical cushion for Sri Lanka’s government as it works to meet its IMF-supported fiscal targets, yet it raises deeper questions about governance, transparency, and the agency’s ability to sustain these gains beyond 2025.
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