Budget 2027: Sri Lanka Slashes Import Levies on Sprats and Chilies, Raises Sugar Tax

Sri Lanka has announced targeted revisions to the Special Commodity Levy (SCL) on key imported food items as part of its 2027 Budget Speech, aiming to balance household cost-of-living relief with domestic market adjustments.

Taking effect immediately from November 13, 2026, the updated tariff structure reduces import duties on everyday culinary staples while increasing the levy on sugar:

• Sprats and Maldive Fish: The SCL will be lowered to a flat rate of Rs. 10 per kilogram, easing import costs for two major sources of household protein.
• Dried Chilies: The levy on both powdered and unpowdered dried chilies will be cut by Rs. 50 per kilogram, providing direct price relief for food processors, hospitality operators, and consumers.
• Sugar: Conversely, the SCL on imported sugar will be increased by Rs. 10 per kilogram, a move expected to shore up state revenue and support local sugarcane producers.

Importers and wholesale traders will be required to clear consignments under the revised levy rates starting tomorrow, with retail price adjustments anticipated across local markets in the coming days.