SATV Kathmandu Oct 26:During a meeting of the Committee on Public Finance (COPF) held on October 21st in Parliament, chaired by Dr. Harsha de Silva, Member of Parliament, the committee considered and approved an Order under the Special Commodity Levy Act No. 48 of 2007 (Published in the Extraordinary Gazette No. 2451/10 pertaining to the increase of the Special Commodity Levy (SCL) on imported big onions and potatoes to ensure a reasonable price for local farmers for the 2025 Yala season.
It was noted that although the SCL was slated for abolition, the Government continues to use it to protect local producers despite vulnerabilities to corruption. Accordingly, action has been taken to increase the SCL on one kilogram of imported Big Onions by Rs. 10 (from Rs. 40 to Rs. 50) and on one kilogram of imported potatoes by Rs. 20 (from Rs. 60 to Rs. 80), with effect from August 26, 2025.
Officials present stated that Sri Lanka's tariff structure must be sustainable, simple, transparent, and predictable for traders. In line with this, the committee issued broader directives, recommending that the Ministry of Trade and Ministry of Finance integrate existing laws with the National Tariff Policy for comprehensive implementation. The committee also directed the ministries to conduct a full assessment of the impact of proposed tariff regime changes, including the move to a strict four-band import duty and the phasing out of Para tariffs (SCL and CESS) from 2027 to 2030, with an update requested by the end of March 2026. To reduce dependency on seasonal tariffs, the committee recommended that the Department of Agriculture create a project to expand the use of high-yield technique kits for big onion cultivation, aiming to cover the entire cultivation area within five years. I was recommended that this should be part of a wider strategy that includes humidity and temperature-controlled warehouses such as “Prabashwara”, buy-back agreements, and futures contracts to reduce post-harvest losses and stabilize prices for farmers. Moreover, the Committee also reviewed and approved Rules under Excise Ordinance (Chapter 52) related to the payment of duty on liquor production. The new rules will stop the production of non-payers after 30 days and halt all distribution and sales after 90 days. This strengthens enforcement, as the current 3% interest penalty on unpaid fees has been an insufficient deterrent due to the lack of stronger recovery mechanisms in the Excise Act. The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Nishantha Jayaweera, Arkam Ilyas, Members of Parliament Rauff Hakeem, Attorney at Law, Harshana Rajakaruna, Nimal Palihena, Chithral Fernando, Attorney at Law, Wijesiri Basnayake, Thilina Samarakoon, Champika Hettiarachchi, and Lakmali Hemachandra, Attorney at Law. Officials including the Secretary to the Ministry of Trade, Commerce, Food Security and Co-operative Development, Mr. K.A. Vimalenthirarajah, and representatives from the Department of Trade and Investment Policy and the Excise Department were also present.
