Customs to take over certain BOI functions in May
The Sri Lanka Customs (SLC) will be taking over the import and export facilitation process of Board of Investment (BOI) companies as part of a pilot project from May 2026.
SLC Director General Seevali Arukgoda speaking with The Sunday Times Business said that the entire import and export clearance will be handled by them.
“We only intend taking over the operations aspect which happens when raw materials arrive and upto the time this is used in the manufacturing of the goods and at export,” he said.
In this regard an MOU has been entered into between the BOI and the SLC last week that would allow the Customs to handle these operations under a pilot project for a period of about 3-6 months. And depending on the success of the work carried out they would then consider the next course of action.
The description, quantity, raw material and the final product are being checked. This would mean the SLC carries out facilitation and control, it was noted.
He pointed out that the SLC together with other relevant parties have formed a committee with officers from both agencies that is involved in formulating a method on how best to carry out these operations and takeover. The extent of involvement of the BOI and Customs will be considered until May.
It was also noted that the certain amendments to the legislations to carry out these work have already been enacted.
When asked the reason for the takeover of the operations, Mr. Arukgoda explained that this was pointed out by the International Monetary Fund (IMF) where it was found that the SLC needs to takeover mainly due to the revenue leakage which the BOI was unable to handle.
Mr. Arukgoda claimed that there were a large number of defraud cases against BOI companies however, he did not state as to the exact amount that was defrauded.
Commenting on the lapses of the BOI, SLC DG stated that the BOI was only capable of facilitating but that some investors have misused the facilities.
Commenting on the shortage of staff at the SLC, Mr. Arukgoda said that they will be starting the process of recruiting officers next month.
Investors are up in arms against this, Free Trade Zone Manufacturers Association (FTZMA) President Dhammika Fernando said.
He pointed out that while it was likely that there were billions and trillions of rupees in revenue leaks happening at the SLC the smooth operations of the investor zones under the BOI since the 1980s will be hampered.
The BOI was established under the name Greater Colombo Economic Commission in 1978. It is the foremost investment promotion agency with over 1600 enterprises under the purview of BOI during its 40 years in operation.
It is learnt that one of the largest zones, the Katunayake Free Trade Zone is likely to be used for this pilot project.
However it is learnt that the trade remains sceptical on the possibility of obtaining a hassle free service from the SLC. While the BOI was established to curb the bureaucracy involved in carrying out daily operations it is uncertain whether the future will continue in this same manner.
The investment promotion arm of the state that was established to eradicate the inherent bureaucracy in the public institution is being handed over to SLC to do away with alleged revenue leaks.
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