• Govt weighs legal action over past import-export abuses
• Finance, Defence and Trade join anti-fraud mechanism
• Licences face cancellation over trade law violations

The Government is reviewing past cases of fraud and irregularities in Sri Lanka’s import and export process for possible legal action, with several ministries, including Finance and Defence, working together under a joint mechanism to prevent such abuses, the Ministry of Trade and Commerce said.

Speaking to The Daily Morning, Deputy Subject Minister R M Jayawardana said the Trade Ministry did not have a direct mechanism to take action against every form of fraud or irregularity in the import and export process.

However, he said several ministries had now joined efforts to address the issue and prevent corruption and other irregularities in the process.

“Our Ministry does not have a direct mechanism to take action on those matters. However, several ministries, including the Ministries of Finance and Defence, have now come together and taken measures to prevent corruption and irregularities taking place in the import and export process,” he said.

He said the Government was examining fraud and other irregularities that had taken place in the import and export of goods in the past and was working towards taking necessary legal action against those responsible and preventing similar incidents in the future. “These kinds of corruption and irregularities have been taking place for a long time. They had increased considerably during the past. What our Ministry does is issue the licences required for imports and exports, and we are now making sure that this process is properly implemented,” he said.

Jayawardana said action would be taken against importers and exporters who violate the relevant laws and regulations, including the cancellation of licences issued to them. “If any importer or exporter acts against the relevant laws and regulations, we will definitely take steps to cancel the licences issued to them,” he said.

Over the past, Sri Lanka has also faced various forms of irregularities in international trade, including the manipulation of values declared for imported or exported goods, commonly referred to as trade misinvoicing. Such practices can affect the amount of customs duties and taxes collected, the value of foreign exchange entering or leaving the country and the accuracy of trade records. 

The issue comes at a time when Sri Lanka continues to depend heavily on imports for fuel, food, medicine, machinery, industrial inputs and other goods needed for domestic consumption and economic activity. At the same time, export earnings are an important source of foreign exchange for the country, making the proper handling of both sides of the trade process important for the external sector.