A probe by the parliamentary watchdog, the Committee on Public Accounts (COPA), has revealed a significant misuse in the process of issuing licenses to import fully electric vehicles by Sri Lankans working abroad, based on foreign remittances.

The investigation found malpractices, including some importers holding over 600 electric vehicle licenses, as well as licenses being issued to individuals who had not travelled abroad during the relevant period.

The COPA probe, chaired by MP Aravinda Senarath, uncovered evidence that raised suspicions of money laundering in the issuance of licenses.

The Auditor General pointed out that the government lost Rs. 2.42 billion in tax revenue due to an increase in the luxury tax exemption limit for 921 vehicles imported up to September 30, 2024.

The Committee also discussed special audit reports related to a scheme, implemented between May 1, 2022, and September 15, 2023, which granted permits for the importation of fully electric vehicles for Sri Lankans employed abroad, based on foreign remittances.

The Auditor General revealed that 1,077 vehicle permits were issued during this period, of which 77 permits were later cancelled. He also noted that two main institutions acted as importers, providing facilities for 640 permit holders. This suggested that a business had been created under the guise of permit issuance.

Furthermore, due to an increase in the luxury tax exemption threshold, from Rs. 6 million to Rs. 12 million for 921 vehicles imported until September 30, 2024, the Auditor General stated that the government lost tax revenue amounting to Rs. 2.42 billion.

It was also revealed that four individuals, who had not travelled abroad during the relevant period, had been issued electric vehicle permits. Since the circular relevant to this scheme did not specify a minimum duration of overseas employment required for eligibility, individuals, who had been abroad for as little as three days or up to three months, as well as those who travelled intermittently, were granted permits. The Ministry of Labour and Foreign Employment had acted under this scheme before it was revised.

Deputy Ministers Maj Gen (rtd.) Aruna Jayasekera, Nalin Hewage, Sugath Thilakaratne, and MPs Kabir Hashim, Dr. M.L.A.M. Hizbullah, Chandana Sooriyaarachchi, Sagarika Athauda, Oshani Umanga, Dinindu Saman Hennayake, T.K. Jayasundara, Manjula Suraweera Arachchi, Ruwanthilaka Jayakody, Lal Premanath, and several government officials attended the meeting.

by Saman Indrajith

Director General of the Commission to Investigate Allegations of Bribery or Corruption, Ranga Dissanayake, says that the abuse of the term “political victimisation” will no longer be tolerated, and those who misuse the term will face strict legal action.

Dissanayake told a media conference held at the CIABOC auditorium: “There is a widespread perception that the law is not effectively enforced in this country. This perception has arisen because, as the President mentioned on Anti-Corruption Day, small fish are caught while the big fish escape. This perception exists for several reasons, including delays in the Bribery or Corruption Investigation Commission’s processes. At times, the public is unaware of the injustices that occur within the Commission.”

Addressing politicians who make public statements, he requested, “I sincerely ask political leaders who issue statements to the media to kindly refer to the Anti-Corruption Act No. 9 of 2023 that you have endorsed. Please refrain from making certain statements without a proper understanding. This law has been enacted independently of any prior connections or influences. I have been in this position since the beginning of this year. The Bribery Commission currently has 31 legal officers, and there is no capacity to recruit additional staff at this time.” He also highlighted the significant challenges faced by the Commission, revealing that approximately 4,000 unresolved case files remain due to limited resources and personnel. “No matter what we do, people will still ask, ‘How many criminals have been caught?’ This situation is the result of limited resources and staff,” he explained. Dissanayake also said: “If anyone is going to claim political victimisation, let them find evidence and prove it. Otherwise, the powers granted by this law will be used against those who make false claims.”

By Pradeep Prasanna

Customs officials took into custody a haul of foreign cigarettes worth over Rs 435 billion while they were being smuggled into the country at the Orugodawatta cargo inspection division.

The cigarettes were found inside a 20-foot container that had been brought into the country from the Jebel Ali port in the United Arab Emirates.

Customs spokesman Additional Customs Director General Sivali Arukgoda said that Customs officers found 2.5 million cigarettes in the container.

The Customs had received information that office furniture was being imported, and upon inspection, it was revealed that cigarettes had been smuggled in illegally.

Arukgoda stated that if these cigarettes had made it past Customs, a significant loss of over Rs. 378 million in duty revenue would have occurred.

Regarding the smuggling of these cigarettes, Arukgoda mentioned that, after taking a statement from a vape clerk, Customs officials are taking steps to apprehend the individual responsible for smuggling this illegal consignment of cigarettes into the country.

Under the supervision of Customs Director General Sarath Nonis, the Customs Revenue Department’s Director Tilak Suraviira, Senior Deputy Director Tissa Dahanayake, Deputy Customs Directors Upul Gonawala, S. Sandagopan, Akila Rupasinghe, Sandun Batagoda, Anushka Kure, and Rakhitha Ariyasena will conduct further investigations.

By Prabhath Withana