Sri Lanka loses US $ 4Bn annually due to under-invoicing in international trade: Champika

• Following recommendations of the Committee the Customs was able to earn Rs. 15Bn revenue in 2023

By Ajith Siriwardana and Yohan Perera

Sri Lanka loses more than US $ 4 billion annually due to under-invoicing in international trade as per the observation of the Global Financial Integrity Report, Chairman of the Committee on Ways and Means Patali Champika Ranawaka said. 

Customs Officials pointed out to the Committee on Ways and Means that after following the recommendations of the Committee on preventing under-invoicing, the Sri Lanka Customs was able to earn Rs. 15 billion in revenue in 2023 when compared to previous years.

The customs officials informed the Committee that Sri Lanka Customs has been able to earn considerable revenue so far this year.It was also revealed in the committee that according to the Tax Expenditure Statement issued by the Fiscal Policy Department of the Ministry of Finance, Economic Stabilization and National Policies on March 31, 2024, Sri Lanka has incurred a loss of Rs.554 billion due to tax relief on VAT, Rs. 324 billion due to relief on customs duty, Rs. 11 billion due to relief on income tax and Rs. 87 billion due to relief on institutional tax reliefs.

Customs Officials pointed out to the Committee on Ways and Means that after following the recommendations of the Committee on preventing under-invoicing, the Sri Lanka Customs was able to earn Rs. 15 billion in revenue in 2023 when compared to previous years.