The Colombo Additional Magistrate’s Court has remanded two suspects, including the son of the owner of gate manufacturing company Elcardo, until 5 September over allegations of defrauding the State of billions of rupees in taxes through the importation of luxury vehicles and construction raw materials.
Additional Magistrate Oshadhi Migara Maharachchi issued the remand order after Sri Lanka Customs officials presented the suspects before court.
Customs informed the court that investigations are continuing into an alleged scheme involving the submission of undervalued invoices to evade taxes payable to the Government.
According to investigators, the State incurred a tax loss of Rs. 4,145,581 through the false declaration of the value of a Mercedes-Benz vehicle. Customs also told court that investigations had uncovered discrepancies involving the import of goods under an invoice valued at US$ 49,815.75, while letters of credit had reportedly been issued for only US$ 19,926.30, leaving a difference of US$ 29,889.45.
Customs further sought travel bans on three directors of Elcardo, arguing that several suspects connected to the case are yet to be arrested. Investigators also opposed granting bail, citing the risk of interference with evidence.
President’s Counsel Nalinda Indatissa, appearing for the suspects, argued that investigators had failed to submit a proper summary of evidence. He further submitted that under Section 127A of the Customs Ordinance, the Magistrate has the discretion to decide whether further remand is necessary and is not bound by the investigators’ request.
After considering submissions from both parties, the Magistrate ordered the suspects to be remanded until 5 September and directed Customs to report the progress of the investigation on that date.
