PAL to be removed on newsprint and solar storage batteries from January 2027

EconomyNext reports that President Anura Kumara Dissanayake presented Sri Lanka’s 2027 budget in Parliament on Thursday and proposed changes to import levies as part of broader tax reforms. Daily Mirror and Ada Derana also report the proposed reduction in CESS rates on 800 selected import categories.

EconomyNext and Daily Mirror report that the CESS cuts are set to take effect on April 1, 2027. Newswire says the tariff schedule covers 800 lines across two groups: 107 lines of goods described as sensitive to local industries, including selected cement, paint, tyre and packaging categories, and another 693 lines. Newswire reports that some of the latter group would receive 50% reductions, with further staged cuts in later years intended to phase out the levy on listed goods.

EconomyNext and Daily Mirror report that the budget proposes ending the 10% Ports and Airports Development Levy on imported newsprint and solar energy storage batteries from January 1, 2027. EconomyNext says the government estimates the PAL changes would reduce annual revenue by 350 million rupees and the CESS changes by 10 billion rupees.

EconomyNext reports that the budget also proposes a subsidy under the Net Plus scheme for households installing rooftop solar systems with battery storage: 25,000 rupees per kilowatt-hour, up to 250,000 rupees for a 10-kilowatt-hour system. EconomyNext says the measure is intended to encourage renewable power and support stability of the national grid.