Expat EV Permits Scheme in mega scam
A large-scale fraud involving the import of electric vehicles worth millions of rupees under special permits granted to expatriate workers has been uncovered, according to the National Audit Office.
Auditor General W.P.C. Wickremaratne recently submitted a report detailing the findings of this scam to Parliament authorities. The results of this forensic audit will be presented to the newly elected Parliament after the general elections in November 2024.
The committee on ways and means had found last year that 119 electric cars worth nearly Rs. 1,200 million had been imported by abusing the permits. As many as 75 of these vehicles had been imported by a single importer, according to audit query findings.
Massive electric vehicle import racket has been exposed by Parliamentary committee on ways and means revealing startling details on misusing the facility given to migrant workers, Times online reported on October 20, 2023 quoting Parliamentary official sources .
The then Chairman of the Committee Patali Champika Ranawake said that luxury electric vehicles had been imported into the country misusing migrant workers’ vehicle scheme.
Of this 75 such vehicles had been brought into the country by a single company, he disclosed without naming the importer.
The Parliamentary committee exposed this fraudulent activity, revealing how the scheme designed to benefit migrant workers was exploited by unscrupulous vehicle importers. These importers, in collaboration with corrupt officials, used the permits to bring in luxury electric vehicles and then sold them in the local market. The committee has directed relevant authorities to take immediate action against the culprits, including any complicit state officials.
Furthermore, new guidelines were issued to the Finance and Labour ministries by the previous regime to properly manage the incentive scheme, allowing migrant workers to import electric vehicles valued at up to $25,000 for two-wheelers and $65,000 for four-wheelers.
The Sunday Times Business had earlier reported that this vehicle import scheme had been turned into a racket by dishonest importers, in collusion with corrupt officials.
The government had initially taken advice from global manufacturers to ensure a sustainable rollout of electric vehicles in Sri Lanka.
However, these recommendations were disregarded in a subsequent policy change, which removed critical manufacturer warranties and eliminated price caps, allowing ultra-luxury vehicles to be imported under the migrant worker scheme.
This change primarily benefited wealthy individuals, further undermining the integrity of the programme. While the scam has been exposed, motor traders lament that it’s akin to shutting the stable door after the horse has bolted.
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