23 hours Ago By Thilina Walpola
The former Secretary to the Ministry of Labour and Foreign Employment has been found by the parliamentary watchdog committee COPA (Committee on Public Accounts) to be responsible for causing losses exceeding two billion rupees to the government due to the misuse of licenses for importing fully electric vehicles for Lankans working abroad, based on foreign remittances. During the probe, COPA Chairman MP Aravinda Senarath stated that the former Secretary had carried out these irregular activities at the request of the former Minister, and that these actions seemed to be aimed at providing privileges to a select group of individuals. It was found that malpractices occurred, ranging from the same importers holding over 600 electric vehicle licenses to issuing licenses to individuals who had not travelled abroad during the relevant period.
The Auditor General pointed out that the government lost Rs. 2.42 billion in tax revenue due to the increase in the luxury tax exemption limit for 921 electric vehicles imported up to September 30, 2024.
The committee also discussed special audit reports regarding a scheme implemented between May 1, 2022, and September 15, 2023, which granted permits for the importation of fully electric vehicles for Lankans employed abroad, based on foreign remittances. The Auditor General further revealed that 1,077 vehicle permits were issued during this period, of which 77 permits were later cancelled. Two main institutions had acted as importers, providing facilities for 640 permit holders.
The Auditor General emphasized that this indicated the creation of a business under the pretext of permit issuance. Moreover, due to the 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 Rs. 2.42 billion in tax revenue.
It was also revealed that four individuals who had not travelled abroad during the relevant period were issued electric vehicle permits. Since the circular related 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 to three months, as well as those who travelled intermittently, were granted permits. It was also revealed that the Ministry of Labour and Foreign Employment had implemented this scheme prior to its revision.
COPA has 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. 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..
