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2025-04-04

News Categories : Committee News 

COPA discloses that there has been significant misuse in issuing licenses to import fully electric vehicles to Sri Lankans working abroad based on foreign remittances

  • Suspicion of money laundering in issuing licenses – Auditor General
  • The government loses Rs. 2.42 billion in tax revenue due to the increase in the luxury tax exemption limit for 921 vehicles imported up to September 30, 2024.
  • Two major institutions have acted as importers providing facilities for 640 licensees – COPA disclose
  • It is clear that a business has taken place under the guise of issuing licenses – COPA
  • Electric vehicle licenses have also been issued to four (4) individuals who did not travel abroad during the relevant period - COPA disclose
  • It is clear that the former Secretary to the Ministry of Labor and Foreign Employment had done everything at the behest of the former Minister – COPA Chair

 

COPA disclosed that a significant misuse has occurred in issuing permits for the importation of fully electric vehicles to Sri Lankans employed abroad, based on foreign remittances.

This was disclosed during the Committee on Public Accounts (COPA), chaired by Aravinda Senarath, Hon. Member of Parliament, in Parliament, held recently (Apr. 02) to discuss the special audit reports compiled regarding the scheme implemented between May 01, 2022, and September 15, 2023, to grant permits for the importation of fully electric vehicles for Sri Lankans employed abroad, based on foreign remittances.

During the meeting, the Auditor General pointed out that there are suspicions of money laundering in the issuance of these vehicle permits. He indicated that these suspicions emerged upon examining the entire procedure carried out in this regard.

The Auditor General further revealed that 1,077 vehicle permits were issued during this period, of which 77 permits were later canceled, and that two main institutions had acted as importers providing facilities for 640 permit holders. He emphasized that this indicates the creation of a business under the pretext of permit issuance.

Moreover, due to the increase of 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 traveled abroad during the relevant period were issued electric vehicle permits. Since the circular relevant to this scheme did not specify a minimum duration of overseas employment required to be eligible for an electric vehicle permit, individuals who had been abroad for short periods ranging from three days to three months, as well as those who had traveled abroad intermittently, had been granted permits. It was also revealed that the Ministry of Labour and Foreign Employment had acted under this scheme prior to its revision.

Accordingly, the Chairman of the COPA stated that the former Secretary of the Ministry had carried out all these irregular activities at the behest of the former Minister and that this appears to have been done to provide privileges to a selected group of individuals.

Furthermore, an official who was present at the meeting stated that, as a public servant, it had been difficult to act with integrity while being involved in this scheme, which is why the official had opted for a transfer.

Accordingly, COPA recommended that an internal investigation be conducted and a report be submitted within a month, and that disciplinary action be taken against the officials involved in these irregularities.

The meeting was attended by COPA members including Hon. Deputy Ministers Major General (Rtd.) Aruna Jayasekera, Nalin Hewage, Sugath Thilakaratne, and Hon. Members of the Committee Kabir Hashim, (Dr.) M.L.A.M. Hizbullah, Chandana Sooriyaarachchi, Sagarika Athauda, Attorney at Law, Oshani Umanga, Dinindu Saman Hennayake, T.K. Jayasundara, Manjula Suraweera Arachchi, Ruwanthilaka Jayakody, and Lal Premanath, along with several government officials.



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