-By A Special Correspondent
(Lanka-e-News -21.May.2025, 11.20 PM) In the murky intersection of power, privilege, and profit, Sri Lanka's richest man, Dhammika Perera, is again under the spotlight. This time, it's not just about unchecked capital accumulation or the acquisition of prime real estate. It’s about duty fraud, deception under Board of Investment (BOI) cover, and what could be a serious violation of European Union trade concession laws. The ramifications are not only domestic—they’re international. And the new NPP government must act, not just for accountability, but for the future of Sri Lanka's trading credibility.
In a case that has simmered in whispers but never properly exploded into public scrutiny, documents and testimonies point toward a scandal involving the export of third-country manufactured bicycles to the European Union—fraudulently labeled as Sri Lankan products to benefit from GSP+ concessions.
The linchpin of this alleged operation? Dhammika Perera, former BOI Chairman and serial investor in everything from slot machines to steel plants. During his BOI tenure, companies under his corporate ecosystem are suspected to have facilitated these exports—products potentially originating from countries like China or Taiwan but rebranded and reboxed under a Sri Lankan banner.
Sources from within BOI's regulatory division, speaking on condition of anonymity, confirmed that an internal inquiry into these exports was quietly commenced in late 2017. But the investigation was swiftly halted. Files were transferred. Phones went silent. Officers were reassigned. The official explanation? "Insufficient evidence." The unofficial whisper? "Too big to touch."
The Generalised Scheme of Preferences Plus (GSP+) allows Sri Lanka duty-free access to the EU market for over 6,000 product lines. It’s not a diplomatic charity. It is conditional—based on human rights benchmarks, sustainable development commitments, and verifiable origin of goods.
Exporting third-country goods under Sri Lankan origin to benefit from GSP+ is not a clever loophole. It’s trade fraud.
If these allegations against Perera’s operations are true, then he hasn't just breached EU protocols—he’s jeopardised Sri Lanka’s national access to billions in preferential trade. The EU's recent reminders to Colombo to ensure “strict compliance with rules of origin” were not coded messages. They were flashing red lights. And the authorities, both then and now, cannot claim ignorance any longer.
Dhammika Perera, despite his polished public image as a job creator and policy thinker, has never convincingly opened his books to the public. Until his sudden entry into politics in 2022, his tax history remained largely speculative. According to data released by the Inland Revenue Department (IRD), his formal tax registration came conspicuously late—just before his parliamentary appointment.
This begs a fundamental question: How did he amass billions before becoming a taxpayer?
Was his capital raised through formal channels, or did the grey economy—dominated by cash dealings, casino earnings, and shadow financing—play a more significant role? Did he obtain lending licenses, or was he engaging in private lending without regulation? Where are the trails of dividend income, capital gains, and international transfers?
If the IMF is holding Sri Lanka to account on fiscal transparency, should not the most prominent industrialist of the nation be placed under the same scanner?
Let us not forget Perera’s shadowy involvement in Sri Lanka’s gaming industry. While much of the sector operates in legislative limbo, Dhammika Perera's casinos have been accused of operating without proper licensing during critical periods. Questions remain over who authorised these licenses, under what criteria, and whether any of the operations were ever formally audited or regulated.
Worse, he purchased the former residence of the Australian High Commissioner—a premium piece of Colombo real estate—reportedly through a foreign currency transaction. The transaction, if paid in foreign currency to a foreign mission, would have required Cabinet approval and gazetting under Sri Lankan financial regulation.
Yet, there is no public record of such approval. How was this greenlit? Were parallel currency channels involved? If an average SME in Sri Lanka attempts to remit funds abroad, they face a mountain of regulation. How, then, did Perera walk straight through the gate?
In 2022, amid growing public scrutiny, Dhammika Perera formally "stepped away" from his corporate holdings—transferring control to his daughter. On paper, this move was to avoid conflicts of interest while assuming a political role. But those in the corridors of Colombo's corporate elite know better.
Did he really resign from all board roles? Has he truly disengaged from the strategic or financial decision-making of his empire? Multiple former employees of his conglomerate allege that he still calls the shots. If true, this makes his resignation a legal sham and a regulatory farce.
In jurisdictions with real corporate governance laws, this would amount to boardroom fraud. Sri Lanka must decide whether its laws are ornamental or operational.
As a former BOI Chairman, Perera wielded enormous influence over investment approvals, tax holidays, and export facilitation. The bicycle scandal may only be the tip of the iceberg. Several companies approved during his BOI tenure, including those in apparel, BPO, and renewable energy sectors, now face allegations of misusing duty-free imports and violating tax norms.
There is even talk of politically connected shell companies gaining BOI approval to reroute non-Sri Lankan goods through Colombo port logistics hubs—effectively laundering goods of foreign origin for export as “Sri Lankan.”
To preserve investor confidence and restore institutional integrity, the new government must audit all BOI approvals during Perera’s tenure, starting with export-heavy ventures.
Perera is not alone in this pattern of financial opacity. From Harry Jayawardena to other high-flying tycoons, Sri Lanka’s business elite has thrived in a parallel economy—where tax files are silent, regulators are toothless, and government officials are either bribed or bullied.
These individuals buy influence, dictate terms, and often function as shadow ministers. The failure to enforce regulations and conduct forensic audits on their enterprises has turned Sri Lanka’s economic landscape into a jungle—where size determines lawfulness.
If the NPP government genuinely wants to attract global investors and model itself on Dubai or Singapore, it must first dismantle this entrenched culture of impunity. Investors want transparency—not monopolistic moguls whose wealth was built on regulatory capture.
This is a defining moment for the Anura Kumara Dissanayake administration.
The tools are there: the newly introduced Proceeds of Crime Act, expanded powers under the Auditor General’s mandate, and support from institutions like the IMF and EU that demand accountability as a precondition for support.
Now, the government must use these tools to thoroughly investigate Dhammika Perera’s business and tax affairs dating back to his university days.
Who funded his first ventures? Were those funds declared? Were there political patrons involved? Did he comply with capital gains tax obligations? Were his casinos legally licensed and audited? Did he truly exit his corporations, or does he still make decisions through proxies?
And most importantly—did he, or companies under his control, export third-country products to the EU under fraudulent certificates of Sri Lankan origin?
If Sri Lanka fails to act, the European Union must launch its own independent inquiry into the misuse of the GSP+ concessions. This is not just about Dhammika Perera. It’s about a system that enables economic deception on an international scale.
The EU’s silence would set a dangerous precedent—that its rules can be bent by political insiders in fragile democracies. Investigating Perera’s trade practices under BOI is essential not only for Sri Lanka’s trade credibility but for the EU’s own standards and safeguards.
For far too long, Sri Lanka has allowed its oligarchs to operate behind a curtain of impunity. That age must end.
The NPP government has a unique opportunity to send a powerful message—that no individual, no matter how wealthy or politically connected, is above the law.
Dhammika Perera must be investigated. His tax history must be opened. His corporate disengagement must be verified. And his alleged involvement in trade fraud must be transparently prosecuted.
This is not vengeance. It is accountability. And it begins now.
-By A Special Correspondent
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by (2025-05-21 20:16:45)
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