A significant misuse has occurred in the issuance of permits for the importation of fully electric vehicles for Sri Lankans employed abroad, under a scheme based on foreign remittances.

This was revealed during a meeting of the Committee on Public Accounts (COPA), chaired by MP Aravinda Senarath, held in Parliament on 2 April to discuss special audit reports on the scheme implemented between 1 May 2022 and 15 September 2023.

During the proceedings, the Auditor General raised concerns over suspected money laundering in connection with the issuance of these permits. These suspicions arose following a comprehensive review of the procedures followed throughout the scheme’s implementation.

The Auditor General further disclosed that 1,077 vehicle permits had been issued during the specified period, of which 77 were subsequently cancelled. Two main institutions acted as importers, facilitating arrangements for 640 permit holders. He emphasised that this pointed to the emergence of a commercial enterprise operating under the guise of permit issuance.

Additionally, it was reported that the increase in the luxury tax exemption threshold from Rs 6 million to Rs 12 million for 921 vehicles imported up to 30 September 2024 had resulted in a government tax revenue loss of Rs 2.42 billion.

It was also revealed that four individuals who had not travelled abroad during the relevant period were nonetheless issued electric vehicle permits. As the circular governing the scheme did not specify a minimum duration of overseas employment for eligibility, permits were issued to individuals who had been abroad for as little as three days to three months, as well as to those who had travelled abroad intermittently. It was further disclosed that the Ministry of Labour and Foreign Employment had operated under this scheme prior to its formal revision.

The COPA Chairman stated that the former Secretary of the Ministry had carried out these irregular activities under the direction of the former Minister, seemingly to confer privileges on a selected group of individuals. Further, an official present at the meeting stated that acting with integrity had been challenging while working within the framework of the scheme, and that this had prompted the official to request a transfer.

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

The meeting was attended by COPA members, including Deputy Ministers Major General (Rtd.) Aruna Jayasekera, Nalin Hewage, and Sugath Thilakaratne, as well as Members 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.