Monday Nov 18, 2024
Monday Nov 18, 2024
Monday, 26 August 2024 04:28 - - {{hitsCtrl.values.hits}}
Sri Lanka Customs Director-General Sarath Nonis
Sri Lanka Customs Director-General Sarath Nonis expressed confidence that the Department is on track to achieve a historic revenue milestone of Rs. 1 trillion by mid-September.
Speaking as the Chief Guest at the 40th AGM of the Spices and Allied Products Producers’ and Traders’ Association (SAPPTA) last Friday, Nonis highlighted the significant progress made in tax revenue collection this year.
“We have already reached a high of Rs. 973 billion in tax revenue up-to-date and I am confident that Sri Lanka Customs will see its tax revenue reaching Rs. 1 trillion for the first time in its history by next month,” he added.
He noted that last year, Sri Lanka Customs achieved a record revenue of Rs. 970 billion and has set a target of Rs. 1.5 trillion for 2024.
Nonis expressed optimism that the Department will meet its ambitious target by the end of this year.
The Director-General attributed the improved tax revenue to enhanced detection of commercial transactions and smuggling, along with additional revenue generated through fines and penalties. “We have managed to minimise most of the leakages that were within the system,” Nonis added.
He asserted the role of technological advancements in boosting performance, particularly through the implementations of the Automated Risk Management Unit, which minimises human intervention and enhances operational efficiency.
Highlighting the importance of integrity and transparency, Nonis stated that a strong code of conduct is central to organisational development and strategic planning within Sri Lanka Customs. “People often blame Customs for corruption, but over the past two years, we have taken decisive actions to prevent corruption,” he stressed.
He disclosed that the Department has suspended around 25 officers and initiated legal proceedings against those involved in corrupt practices.
Nonis urged industry stakeholders to lodge complaints against any wrongdoing, assuring them of Sri Lanka Customs’ commitment to maintaining high standards of trade facilitation.
During his address, Nonis shared insights into Sri Lanka’s spice export performance. He pointed out that historical data reveal a modest growth in spice exports, with the value reaching $ 393 million in 2023 up from $ 355 million in 2013, reflecting an annual growth rate of only 1.03%.
He noted that around 32% of Sri Lanka’s spice exports are shipped to India, 24% to Mexico, 10% to the US, and 5% to Peru, with minimal proportions going to other countries.
Nonis also highlighted opportunities for Sri Lankan spices in the European Union (EU) market, which is projected to reach $ 7 billion by 2025. Currently, Sri Lanka’s contribution to this market is only 0.6%. “This suggests that we have not yet achieved significant success in penetrating higher-value markets,” Nonis said.
He noted that consumers in these markets are willing to pay a premium for product quality, brand reputation, and value added features.
The Director-General asserted the need for Sri Lanka to enhance its competitive edge in global spice markets by focusing on value addition, product differentiation, and quality assurance.
He urged the room full of industry champions to work towards positioning Sri Lankan spices as premium products that meet the demands of international consumers with the upcoming FTAs and PTAs that the Government is working on.
“Our exports must evolve to include the attributes necessary to compete effectively in these lucrative markets,” he said, calling for collaborative efforts between the Government and industry and trade associations to elevate Sri Lanka’s spice sector and drive economic growth.
