How to Calculate Import Duty in Sri Lanka

What is import duty in Sri Lanka?

Import duty in Sri Lanka is a collective term for several levies charged by Sri Lanka Customs when goods enter the country. The levies are defined under the Customs Ordinance, Finance Acts, and the National Imports Tariff Guide (NITG), which is revised periodically and sets out the applicable rate for each HS code.

Unlike most countries where a single tariff rate applies, Sri Lanka stacks multiple levies — each calculated on a different base and applied in sequence. The cumulative effect is that the total duty burden can significantly exceed the headline Customs Duty rate. For a standard 30% customs duty item, the total effective duty including PAL, SSCL and VAT is typically 60–70% of the CIF value.

The 7 layers of Sri Lanka import duty

Duties are applied in a strict order. Each layer is calculated on a specific base — and critically, VAT is applied last on the full duty-inclusive amount, amplifying the effect of every levy applied before it.

1. 1

   Customs Import Duty (CID)

   Base: CIF value

   Varies by HS code (0%, 5%, 10%, 15%, 25%, 30%, 100% for vehicles)

   The primary tariff. Most common rates are 0%, 15% and 30%.

2. 2

   Ports & Airports Levy (PAL)

   Base: CIF value

   7.5% (general) or 2.5% (SAFTA LDC origin)

   Applied almost universally — very few exemptions.

3. 3

   Cess

   Base: CIF value

   Varies — only applies to specific HS codes

   A supplementary levy on selected goods, often agricultural products.

4. 4

   Excise Duty / SPD

   Base: CIF + CID + PAL + Cess

   Varies — applies to vehicles, tobacco, alcohol and some electronics

   Stacked on the duty-inclusive value. Motor vehicles attract the highest rates.

5. 5

   Special Commodity Levy (SCL)

   Base: CIF value

   Fixed per-unit or percentage — selected commodities only

   Applies to rice, wheat flour, sugar, milk powder and a few other staples. Does not replace other duties.

6. 6

   Social Security Contribution Levy (SSCL)

   Base: CIF + CID + PAL + Cess + Excise + SCL

   2.5%

   Broad-based levy. Very few exemptions.

7. 7

   Value Added Tax (VAT)

   Base: All of the above cumulative

   18%

   Applied last, on the full duty-inclusive value. This is the largest single component for most goods.

Worked example — consumer electronics

Assume you are importing a television with a CIF value of LKR 50,000. The HS code carries 30% Customs Duty, 7.5% PAL, 0% Cess, 0% Excise, 2.5% SSCL and 18% VAT.

SSCL base = CIF + CID + PAL = 68,750. VAT base = 68,750 + SSCL = 70,469. Effective duty: 66.3% of CIF.

Step 1: Find the right HS code

Every imported product is classified under an 8-digit Harmonized System (HS) code. The HS code determines the applicable duty rates. The correct classification is your legal obligation — an incorrect code can result in penalties, delays, or re-assessment.

Use the HS Code Search on tariff.lk to find the correct code for your product. You can also browse by chapter if you know the general product category.

Once you have the HS code, the Duty Calculator shows all applicable rates and computes the full stacked amount from your CIF value.

Step 2: Convert CIF to LKR using the gazette exchange rate

If your CIF value is in a foreign currency, you must convert it to LKR using the official rate published by Sri Lanka Customs in the Extraordinary Gazette — not the commercial bank rate or Central Bank mid-rate.

Gazette exchange rates are updated weekly (every Monday). tariff.lk shows the current gazette rates for over 50 currencies, and the duty calculator applies them automatically when you enter a CIF value in foreign currency.

Step 3: Check for FTA savings

If your goods originate from India, Pakistan, Singapore, China, South Korea, Thailand or SAFTA LDC countries (Bangladesh, Nepal, Bhutan, Maldives, Afghanistan), a Free Trade Agreement may reduce or eliminate the Customs Duty component. PAL, SSCL and VAT continue to apply at standard rates.

To claim FTA rates, you must present a valid Certificate of Origin issued by the relevant authority in the country of origin. The duty calculator on tariff.lk shows available FTA rates for each HS code.