Committee on Public Finance (CoPF) Chairman Harsha de Silva has raised concerns over the government’s latest decision regarding cross-border Letters of Credit (LCs) and de-registration requirements related to vehicle imports.
At a committee meeting on Tuesday, de Silva questioned Treasury officials about the status of the review process following CoPF’s earlier recommendations.
“The government has decided to proceed with re-exporting vehicles in line with the provisions of the Act. However, the matter has been challenged in court, so it’s difficult to discuss this now,” Deputy Treasury Secretary Dilip Silva said.
He added, “Nevertheless, the government’s position is clear—vehicles that do not meet import conditions will be re-exported.”
Acknowledging the legal constraints on discussing sub judice matters, de Silva stressed on the need to consider associated issues, such as demurrage costs.
Treasury Secretary Silva stressed the importance of enforcement. “At some point, we must draw the line. Regulations are repeatedly violated and diluted. Historically, violations have been met with fines, but the private sector finds other avenues. This time, the government has decided to implement the Act through re-exportation to instill regulatory discipline,” he said.
“Imagine we re-export these vehicles—wouldn’t it become a fire sale?” de Silva asked.
Deputy Minister Chathuranga Abeysinghe intervened, stating it was inappropriate to debate the merits of the decision during the session, as the issue remains before the courts. (Newswire)