• Cites lack of transparency, tells Fin. Min., CBSL, Customs & Foreign Employment Min. to submit joint report  

Since there is no transparency in the scheme of providing fully electric vehicle licenses to Sri Lankans working abroad and there appears to be many issues pertaining to the matter, the Chairperson of the Parliamentary Committee on Public Finance (COPF) Dr. Harsha de Silva instructed that a full analysis be carried out jointly by the Ministry of Finance, the Central Bank of Sri Lanka (CBSL), the Customs and the Ministry of Labour and Foreign Employment. 

The Chair further instructed that a report on the same be submitted within two weeks. It was also instructed to find out whether foreign remittances have been received at a significant level through this system, or whether some persons have misused this facility.

Furthermore, until the analysis is received, it is not possible to give approval to the relevant gazette extending the period of licensing, he said.

Dr. de Silva stated thus when the COPF took into discussion the Gazette Number 2368/24 published to extend the period of the scheme for providing fully electric vehicle licenses to Sri Lankans employed abroad until 30 September of this year.

According to the circular issued by the Ministry of Labour and Foreign Employment, the scheme of providing fully electric vehicle licenses to Sri Lankans employed abroad was implemented and luxury car related tax concessions of up to Rs. 12 million were given to workers who have remitted United States Dollars ($) 20,000 or more to the country. The period of this scheme, which was implemented for the first time by the gazette published on 10 February of last year (2023), has been extended by the gazette issued on 31 May 2023, and further extended by the gazette of 24 January 2024.

Dr. de Silva further stated that although the Ministry of Finance had requested the Ministry of Labour and Foreign Employment to provide all relevant information including the persons who bought vehicles since the beginning of this process, the Ministry of Labour and Foreign Employment has informed that the Attorney General should be inquired about the provision of confidential and private information. However, the COPF pointed out that there is no transparency or proper regulation here.

In this context, Dr. de Silva stated that many allegations of various irregularities have been reported to the COPF and also stated that through this, vehicles with tax relief amounting to Rs. 100 million have been imported. It was disclosed that 1,019 licenses have been granted so far and that $ 109.8 million remittances have been received through this. The officials also said that the value of the licenses granted so far amounts to $ 46 million. 

Dr. de Silva pointed out that even if these remittances are added to the account at once, irregularities may occur in the qualification of a foreign worker for this facility and that through this system, various smugglers will also be given space for money laundering. Furthermore, it was discussed that there is a doubt as to whether workers who do normal jobs have brought such valuable vehicles. 

Furthermore, Dr. de Silva pointed out that there is a group called the facilitator in this process but that no information about them has been given. Accordingly, the Ministry of Labour and Foreign Employment was instructed to provide the said information immediately.