Sri Lanka’s Committee on Public Accounts (COPA) has exposed a high-level racket in which officials from the Department of Motor Traffic (DMT) allegedly facilitated the illegal importation of luxury vehicles under falsified agricultural and religious exemptions, costing the state millions in lost revenue.

DMT officials reportedly used forged documents to classify luxury cars as tractors, exploiting tax concessions meant for agricultural equipment.

Around 158 vehicles were illegally imported under special permits reserved for religious organisations, raising concerns over systemic corruption.

Despite an internal probe, only one official was temporarily suspended before being reinstated due to “insufficient evidence,” highlighting accountability gaps.

Sri Lanka’s Customs and motor vehicle regulation systems have long been criticised for opacity and inefficiency. The misuse of tax waivers-originally designed to support farming and religious institutions-points to broader vulnerabilities in import controls, potentially deterring foreign investors concerned about financial malpractice.

DMT Commissioner General Nishantha Anuruddha Weerasingha confirmed the investigation but admitted procedural lapses. COPA Chairperson MP Aravinda Senarath demanded stricter oversight, sending DMT officials back on 12 March for failing to provide adequate documentation.

COPA has ordered a full audit, while industry analysts call for digital reforms to curb document fraud. The case may prompt tighter scrutiny of tax exemptions, particularly for high-value imports.