Sri Lanka Deputy Minister warns traders against smuggling

Sri Lanka’s Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, has issued a formal warning to traders against the sale of smuggled or illegally imported goods. The minister emphasized that businesses must refrain from accepting merchandise brought into the country through illegal channels, such as unpaid taxes or undervalued invoices.

To combat these practices, authorities have initiated “backward audits,” a process that traces products through retailers, suppliers, and importers to verify that proper customs duties were paid. Abeysinghe advised traders to maintain detailed invoices for every product purchased for resale, clearly stating the manufacturer or importer's details. He also noted that the use of “on approval” bills is unlawful.

The crackdown follows recent enforcement actions by the Consumer Affairs Authority (CAA), which conducted 108 raids targeting imported cosmetics and footwear. During these inspections, the CAA seized goods worth approximately Rs. 1.5 million, noting that many establishments failed to produce valid documentation for their stock. The Ministry of Industry has invited complaints regarding goods sold at unusually low prices, including suspected dumping.