As many as sixty-five members of the new Sri Lankan parliament have sold permits to businessmen that allow them to buy duty-free vehicles according to local media.

The Sunday Times of Sri Lanka says the MPs are also entitled to a generous credit entitling them to open letters of credit (L/Cs) to help fund vehicle imports.

Duty-free permits

The newspaper says that nearly one-third of the new Sri Lankan parliament have already sold the duty-free permits given to them free by the government, mainly to businessmen, for between the equivalent of around US$108,000 to US$153,000.

The new Sri Lankan parliament was elected in April 2010, the first such election since the conclusion of a thirty year civil war.

Official cars

According to the newspaper, included amongst the MPs who have sold their permits are cabinet ministers. They already have official cars for their use.

Moreover, The Sunday Times claims that the MPs will be entitled to another permit in five years time.

L/C terms

Some MPs have imported vehicles and then sold them unused at the market price according to the newspaper, which suggests a top of the range Toyota Sahara can be purchased for the equivalent of around US$63,000 using the duty-free permit and sold for the equivalent of around US$271,000.

An MP is also entitled to a credit of up to US$50,000 from any bank to open an L/C if he or she wishes to import the vehicle.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.