By: Staff Writer
August 04, Colombo (LNW):Sri Lanka Customs has posted record-breaking revenue figures in 2025, collecting Rs. 1,227 billion by August 1, with July alone bringing in an all-time high of Rs. 231 billion. This surge—driven primarily by a sharp increase in motor vehicle imports—comes even as the department faces growing scrutiny over corruption, fraudulent practices, and the unauthorized release of cargo.
Officials confirmed that over 28,000 vehicles were imported in July, contributing significantly to the Rs. 300 billion collected from motor vehicle imports this year. However, this revenue windfall is accompanied by serious concerns over malpractices, including the alleged fraudulent registration of vehicles and the release of 312 containers without proper inspection.
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has launched inquiries into these cases in collaboration with the Department of Motor Traffic and Sri Lanka Customs. Among the high-profile investigations is a case involving ten BYD vehicles suspected of undervaluing duties. One vehicle has already been re-exported over documentation discrepancies, while others remain under scrutiny.
Customs spokesperson Seevali Arukgoda noted that these incidents have not derailed the department’s broader revenue goals. “By end-July, we exceeded our revenue expectations by Rs. 116 billion, and we are confident of surpassing the annual target of Rs. 2,115 billion,” he said. Arukgoda attributed the success to strategic planning under a five-year operational roadmap launched in 2024.
He also reiterated that any attempts to defraud Customs will result in severe penalties, including the confiscation of goods and fines up to three times their value. To ensure fairness and transparency, Customs uses the global Harmonized System (HS) classification for determining duties—applied uniformly to all importers.
Despite the department’s strong performance, concerns about inefficiencies remain. Arukgoda acknowledged that delays in port clearance—especially for vehicles—are common due to the complexity of verifying documentation, vehicle age, and tax compliance. However, he emphasized that delays are often due to coordination issues with other agencies rather than Customs itself.
Meanwhile, Sri Lanka is rolling out institutional reforms to tackle corruption systemically. A National Anti-Corruption Action Plan (NACAP) for 2025–2029 is in development, focusing on prevention, education, institutional capacity-building, and legal reform. Under the Anti-Corruption Act No. 9 of 2023, CIABOC has been empowered with greater authority to investigate and prosecute corruption cases.
As Sri Lanka Customs celebrates unprecedented revenue gains, authorities face a dual challenge: sustaining fiscal momentum while rooting out deep-seated corruption that continues to cast a shadow over one of the government’s most vital revenue-generating agencies.
