Sri Lanka Customs internal affairs unit opened after IMF findings

ECONOMNEXT – An internal affairs unit at Sri Lanka Customs which will receive and investigate public complaints, State Minister for Finance Ranjith Siyambalapitiya said formally opening the office.

The Internal Affairs unit will further strengthen the relationship with the public, he had said.

Internal Affairs Units will be set up at Inland Revenue and Excise agencies as well, he said.

Setting up internal affairs units was a recommendation of an International Monetary Fund corruption diagnostic report.

“Internationally, Customs and tax administrations usually have small dedicated Internal Affairs units to investigate alleged cases of staff malfeasance,” the IMF report said.

Small Internal Affairs units could be established in each department reporting to the department head to investigate allegations of corruption and for referral to the Public Service Commission or the bribery commission as appropriate, the report said.

Public complaints could be made through several means.

By phone
0112 – 221 331
0112 – 221 333
0704 – 752 803

Email: [email protected]

Whatsapp: 070 4 752 803

Sri Lanka has high import duties which encourages corruption at the border, analysts say.

Sri Lanka started to intensify trade controls after macroeconomists started to print money with the setting up of the central bank in 1950.

Some of the worst controls and licensing were imposed during the so-called ‘closed economy’ which led to widespread corruption including down to the level of co-operative societies, which had special access to rationed goods.

RELATED Sri Lanka tax officials acknowledge “rampant state of corruption”: IMF report

High levels of ‘progressive taxation’ where tax rates are selectively imposed on different sections of the public undermining the principle of equal treatment may also similarly lead to corruption, analysts say.

The US had to change its constitution (the 16th Amendment) to charge progressive income tax, (initially at 1 and 4 percent) after the Supreme Court struck down such taxes as a denial of equal treatment under law and expropriation. (Colombo/Aug08/2024)