The permit scheme for importing electric vehicles has been severely misused, with two companies monopolizing the process under the apparent blessings of high-ranking politicians from the previous regime.
A Monopoly of Two
A special audit by the National Audit Office has revealed that more than 60% of electric vehicle imports were handled by just two companies, despite the registration of 30 companies under the scheme. Auto Capital Investment (Pvt) Ltd imported 335 vehicles, while Overland Auto Mobile accounted for 305 imports. These two companies imported 640 cars, approximately 60% of the total electric vehicles brought into Sri Lanka under this initiative.
The audit also disclosed troubling irregularities in the scheme. By June 30th, only 375 of the 510 imported vehicles were registered with the Department of Motor Traffic. This leaves 135 vehicles unaccounted for, with strong suspicions that they have been sold or transferred to other parties without proper registration. Furthermore, of the registered vehicles, 84 had already been transferred to third parties, a clear violation of the program’s guidelines.
The scheme required permit holders to register with the Sri Lanka Bureau of Foreign Employment (SLBFE), but compliance was alarmingly low. Only 286 out of 1,000 permit holders—a mere 28.6%—fulfilled this requirement, raising questions about the oversight and enforcement of the program.
Lucrative
Introduced in February by the Ministry of Labour and Foreign Employment, the scheme aimed to incentivize Sri Lankans employed abroad to remit foreign currency to the country. Permit holders who remitted USD 20,000 or more were offered luxury car tax concessions of up to Rs 12 million, making the program highly lucrative.
Despite its noble intent to attract foreign remittances, the scheme has been plagued by abuse and lack of accountability. The monopolization of imports by a select few companies and the widespread non-compliance among permit holders highlight significant flaws in governance and oversight.
These findings call for urgent action to address the misuse of the permit scheme, ensure transparency, and hold violators accountable. The future success of such initiatives depends on strict adherence to regulations and equitable access to opportunities for all eligible participants.
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