FTA Guide · 2026
Sri Lanka FTA Import Duty Guide 2026
Sri Lanka has five active Free Trade Agreements that can significantly reduce import duty for goods from eligible countries. This guide explains each FTA, the countries and goods covered, how to claim preferential rates, and what Certificate of Origin documentation is required.
Check FTA rates for your specific HS code - and calculate the saving vs standard duty.
Open Duty Calculator →What are Free Trade Agreements?
A Free Trade Agreement (FTA) is a treaty between two or more countries that reduces or eliminates import tariffs on qualifying goods traded between them. Sri Lanka's FTAs offer preferential Customs Duty (CID) rates - often 0–15% instead of the standard 25–100% MFN rate - for goods that originate in the partner country and meet the applicable rules of origin.
FTA savings only apply to the Customs Duty component of the total duty bill. PAL, SSCL and VAT still apply at standard rates. Even so, since CID is the largest component for most goods, FTA savings can be substantial - often reducing the effective duty rate by 20–40 percentage points.
Sri Lanka's active Free Trade Agreements
Countries: India
Coverage: Wide - most manufactured goods, textiles, electronics
Certificate of Origin: Form ISL (DGFT / Export Inspection Agency)
Negative list excludes some sensitive products. Most impactful FTA for Sri Lanka importers.
Countries: Pakistan
Coverage: Moderate - textiles, apparel, sports goods
Certificate of Origin: Form PSFTA (TDAP Pakistan)
Good for textile and apparel imports from Pakistan.
Countries: Singapore
Coverage: Broad - goods with substantial Singapore origin/value-add
Certificate of Origin: Form SLSFTA (Singapore Customs)
Rules of origin require goods to be substantially produced or processed in Singapore.
Countries: China, South Korea, Thailand, Bangladesh
Coverage: Selected goods - varies by country
Certificate of Origin: Form A or CO issued by national authority
Useful for electronics and manufactured goods from China and Korea.
Countries: Bangladesh, Nepal, Bhutan, Maldives, Afghanistan
Coverage: Most goods from LDC members
Certificate of Origin: Form SAFTA issued by national authority
LDC members attract reduced PAL (2.5% instead of 7.5%) in addition to CID reduction.
ISFTA - the most impactful FTA for Sri Lanka
The Indo-Sri Lanka Free Trade Agreement (ISFTA) is Sri Lanka's most significant preferential trading arrangement. It covers a wide range of goods manufactured in India and offers substantial Customs Duty reductions - many HS codes have a 0% ISFTA rate compared to standard rates of 15%, 25% or 30%.
ISFTA has a negative list of goods excluded from preferential treatment. Key exclusions include motor vehicles (which have special vehicle-specific FTA provisions), most petroleum products, and certain agricultural commodities. For all other goods, the ISFTA rate is available with a valid Certificate of Origin Form ISL.
The ISFTA rate for any specific HS code is shown on the HS code page on tariff.lk under "Preferential / FTA rates". The duty calculator also lets you select India as the origin country to compare ISFTA vs standard duty in real time.
How to claim FTA preferential rates
- 1
Verify the FTA rate
Check the HS code page on tariff.lk or use the duty calculator to confirm an FTA rate exists for your goods and is lower than the standard rate.
- 2
Obtain a Certificate of Origin
Request a Certificate of Origin from the relevant authority in the exporting country before shipping. For India: Form ISL from DGFT or authorised Export Inspection Agencies. The CO must describe the goods, HS code and declare the origin.
- 3
Present the CO to Sri Lanka Customs
Submit the original CO with your Customs Declaration (CusDec). The CO must be valid - typically issued within 90 days of shipment. Photocopies or electronic COs may not be accepted without advance approval.
- 4
Declare the preferential rate on the CusDec
On the CusDec, declare the FTA rate under the applicable tariff preference code. Customs will verify the CO before accepting the preferential rate.
Frequently Asked Questions
Which countries have a Free Trade Agreement with Sri Lanka?▾
Sri Lanka has active FTAs with India (ISFTA), Pakistan (PSFTA), Singapore (SLSFTA), and regional agreements under APTA (China, South Korea, Thailand, Bangladesh, India) and SAFTA LDC (Bangladesh, Nepal, Bhutan, Maldives, Afghanistan). The Indo-Sri Lanka FTA is the most impactful - it covers the widest range of goods and offers the largest duty reductions.
What is a Certificate of Origin and why is it required?▾
A Certificate of Origin (CO) is an official document certifying that the goods were manufactured or substantially transformed in the FTA partner country. It is required to claim the preferential tariff rate at Sri Lanka Customs. Without a valid CO, the standard (MFN) duty rate applies regardless of the goods' origin. For ISFTA, the CO is Form ISL issued by DGFT or an authorised Export Inspection Agency in India.
Does FTA reduce all layers of Sri Lanka import duty?▾
No. FTA rates apply only to the Customs Import Duty (CID) component. PAL (7.5%), SSCL (2.5%) and VAT (18%) continue to apply at standard rates regardless of FTA. In some cases PAL is also reduced (e.g. SAFTA LDC origin attracts 2.5% PAL instead of 7.5%), but generally the FTA saving is on CID only.
What is the ISFTA rate for goods from India?▾
ISFTA rates vary by HS code - some goods are fully free (0%), others have partial reductions (5%, 10%, 15%) and some goods are on a negative list and excluded from ISFTA entirely. The ISFTA rate for your specific HS code is shown in the "Preferential / FTA rates" table on each HS code page on tariff.lk.
Can I use multiple FTAs on the same shipment?▾
No. Only one FTA can be applied per shipment, determined by the country of origin. If your goods are manufactured in India, you use ISFTA - even if India is also part of APTA. The country of origin (as stated on the Certificate of Origin) determines which FTA applies.
What is APTA and which countries does it cover?▾
APTA (Asia-Pacific Trade Agreement) is a preferential trading arrangement covering China, South Korea, Thailand, Bangladesh, India and Sri Lanka. For goods originating in China, South Korea or Thailand imported to Sri Lanka, the APTA preferential rate (shown as rate_ap on tariff.lk) may apply. The savings are typically smaller than ISFTA but can be significant for certain goods from China or Korea.