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Government Launches Internal Customs Unit to Combat Corruption 

August 10, Colombo (LNW): Sri Lanka Customs has officially opened an Internal Affairs unit to address and investigate public complaints. This unit, inaugurated by State Minister for Finance Ranjith Siyambalapitiya, is part of the Internal Affairs Division at Sri Lanka Customs (SLC).

According to Minister Siyambalapitiya, the new unit will play a crucial role in enhancing the relationship between the public and the SLC. 

The establishment of this unit was recommended by a corruption diagnostic report from the International Monetary Fund (IMF), which noted that globally, customs and tax administrations typically have dedicated Internal Affairs units to investigate cases of staff misconduct.

The launch of this unit comes amid increasing demands from the private sector for the full digitization of SLC operations. These businesses argue that the current manual processes are vulnerable to corruption by some officers, which negatively impacts the business environment. The IMF report also pointed out a prevailing culture of corruption within the SLC.

Minister Siyambalapitiya defended the SLC, stating that the new unit would help improve public trust in the organization. He acknowledged that while the SLC plays a unique role in the country, it is subject to both praise and criticism. He also stressed the importance of enhancing public trust as a key goal moving forward.

The IMF report suggested that small Internal Affairs units could be established in each department, with direct reporting to the department head. These units would investigate allegations of corruption and refer cases to the Public Service Commission or the bribery commission as appropriate.

Public complaints to the Internal Affairs unit can be made through several channels, including phone numbers 0112-221 331, 0112-221 333, 0704-752 803, email ([email protected]), and WhatsApp (0704-752 803).

Analysts have noted that Sri Lanka’s high import duties contribute to corruption at the border. The country began to intensify trade controls following the establishment of the central bank in 1950, which led to increased money printing. 

Additionally, the selective imposition of progressive taxation on different public sections can undermine the principle of equal treatment, potentially leading to corruption.

In balancing trade facilitation and regulatory control, Customs manages the dual risks of failing to facilitate international trade and non-compliance with Customs laws. 

To address these risks, the Compliance and Facilitation Directorate was established, comprising the Post Clearance Audit Branch (PCAB) and the Refund Branch. Consignees, declarants, transport providers, shipping agents.

The directorate also included , banks, logistics providers, forwarding agents, and clearing agents are expected to comply with Customs laws, regulations, and Generally Accepted Accounting Principles in their financial reporting.

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