Customs digital reform to fast-track FTZ Imports and Exports
Sri Lanka Customs is accelerating its digital transformation to streamline trade and reduce corruption following the government’s policy directive of centralising revenue control averting possible revenue leakage.
The new digital transformation will enable the department to handle the import and export and clearance functions currently managed by the Board of Investment (BOI), a senior official of the Finance Ministry told the Sunday Times Business.
Since May 7, 2025, it has been mandatory for all shipping lines and freight forwarders to submit cargo manifests exclusively through ASYHUB, replacing older Automated System for Customs Data (ASYCUDA) World methods for this specific task, he revealed.
ASYHUB is a cloud-native, open, and standardised platform developed by the United Nations Conference on Trade and Development (UNCTAD) under its ASYCUDA Programme.
The Trade National Single Window (TNSWS) will be opened under the initiative, he said adding that a pilot phase is set for late 2026, with full operations starting in 2027.This will integrate 18 government agencies into a single digital platform to slash red tape.
This reform is a specific benchmark tied to the International Monetary Fund (IMF) programme, he said.
Customs will handle the entire process from the arrival of raw materials through manufacturing to final export.
A joint committee between Customs and the BOI has been formed to formulate the exact takeover method.
Ii includes the Implementation of Pre-Arrival Clearance, an Automated Risk Management System, and an Electronic Cargo Tracking System.
A new Code of Ethics and Conduct, developed with IMF and World Bank assistance, was issued in early 2026 to institutionalise accountability.
Another pilot project spanning 3-6 months to test the transition of operations will be starting at the Katunayake Free Trade Zone in in May 2026 following a Memorandum of Understanding (MOU) signed between the BOI and the Customs.
The Free Trade Zone Manufacturers Association (FTZMA) and other investor bodies have expressed alarm, fearing that the “green channel” efficiency established by the BOI over 30 years will be replaced by bureaucratic delays inherent in the Customs system.
Critics warn that removing the BOI’s dedicated facilitation role could make Sri Lanka less attractive compared to regional hubs like Vietnam, Malaysia, and India, which use specialised zones to expedite trade.
The exporters are also worried that any future trade union action by the Customs department may bring the entire export trade to a standstill, especially in critical sectors such as the garments trade.
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