Sri Lanka Customs and the Inland Revenue Department (IRD) signed a Memorandum of Understanding (MoU) to establish a coordinated mechanism for joint investigations aimed at preventing revenue losses to the State.
The MoU was signed at the Ministry of Finance on January 13, in the presence of Treasury Secretary Harshana Suriyapperuma.
Officials said an operational committee attached to Sri Lanka Customs has identified widespread under-valuation of imported goods at the point of declaration as a major contributor to tax revenue losses. Investigations have also revealed that some businesses import goods through third parties on a temporary basis to evade taxes, resulting in the non-payment of dues to the Inland Revenue Department.
Under the newly signed agreement, Sri Lanka Customs and the IRD will work together through a joint mechanism to address these irregular practices. The MoU is expected to enhance information sharing, strengthen enforcement, and improve the effectiveness of investigations related to customs duties and inland revenue taxes.
The initiative aims to boost state revenue, curb tax evasion in import-related activities, and reinforce regulatory oversight under the supervision of the Ministry of Finance.
