New Import System - Every Dollar Now Monitored

COLOMBO (News 1st); Sri Lanka has announced a major regulatory overhaul of its import sector, introducing a new system aimed at tightening monitoring and improving transparency in foreign payment transactions, Deputy Minister of Finance Anil Jayantha Fernando said.

Under the new framework, any individual or business involved in import transactions, especially those making advance payments through banks, will now be required to follow a set of mandatory procedures that apply across all financial institutions. 

The move is part of a broader effort to strengthen oversight of foreign exchange flows and ensure better coordination between banks and Sri Lanka Customs.

A key feature of the new system is the introduction of a unique identification number for every import-related transaction.

Banks will be responsible for generating this reference number, which must then be submitted to Sri Lanka Customs along with detailed information about the transaction.

Authorities say the primary goal of this mechanism is to enable accurate tracking and matching of import activities with the corresponding foreign currency payments, including US dollars and other currencies sent overseas. The system is expected to plug gaps in monitoring and enhance accountability in cross-border trade.

As part of the new requirements, importers must provide a valid Taxpayer Identification Number (TIN) to ensure proper identification and compliance with tax regulations. In addition, detailed information such as the importer’s address and the address of the overseas recipient must be submitted.

The regulations also require the inclusion of the recipient’s bank account details, ensuring complete visibility of the transaction chain. On the domestic side, the local bank facilitating the payment must be clearly identified, including its bank code and branch details.

Authorities have further mandated that the type of currency used, whether US dollars, euros, yen, or othersm, must be specified, along with the payment method, such as telegraphic transfer (TT) or other accepted mechanisms used in import financing.

Additional information, including the delivery terms of the imported goods and the exact date of remittance, must also be declared. In cases where advance payments are made, importers are permitted to submit a pro forma invoice, but this must include the invoice number and a clear description of the goods intended for import.

Officials stressed that all required information must be submitted promptly to Sri Lanka Customs by either the importer or the party making the payment, ensuring real-time reporting and improved regulatory control.
Furthermore, all importers will be required to register officially with Sri Lanka Customs in order to conduct import activities under the new rules.

The Import and Export Control Department is expected to issue detailed operational guidelines in the near future, outlining how the regulations will be implemented in practice and providing clear instructions to ensure compliance across the sector.

Deputy Minister Fernando emphasized that the measures are not intended to restrict imports but rather to strengthen regulation, improve transparency, and streamline foreign payment processes linked to imports. 

The initiative is expected to enhance efficiency, reduce irregularities, and reinforce confidence in Sri Lanka’s trade and financial systems.