Aligning with global best practices requires Sri Lanka to embrace independent and impartial reviews where necessary

Sri Lanka Customs plays a vital role in safeguarding the national economy, both through its regulatory responsibilities and revenue collection functions. As the country’s border control authority, the Department is tasked with facilitating legitimate trade while preventing illegal activities such as smuggling and other forms of illicit cross-border movement.

As a regulatory body, Customs must also remain accountable for the actions it takes. In fulfilling its mandate, Sri Lanka Customs—similar to Customs administrations worldwide—may be required to initiate investigations that lead to formal inquiries. These investigations are conducted in line with globally accepted standards and procedures, reflecting the Department’s role in international law enforcement and its responsibility to uphold transparent, fair, and consistent practices.

Customs investigations are typically initiated upon detecting irregularities such as misdeclaration, undervaluation, or violations related to imports and exports. At present, the full inquiry process is carried out internally within the institution, without the requirement to seek an independent review. This internal structure means that matters involving external parties are handled without impartial or third-party oversight.

Although the goods or interests under inquiry often belong to private entities, decisions are made exclusively by the officials, which can give rise to concerns regarding transparency and potential conflicts of interest. A comparable investigative approach is also followed by other regulatory bodies in Sri Lanka.

Global norms

Internationally, administrative bodies engaged in decision-making are expected to uphold principles of fairness and impartiality. Accordingly, processes must adhere to key standards such as impartial decision-making, the right to be heard, transparency, access to review mechanisms, and overall procedural fairness.

In line with these norms, the World Customs Organization—through Chapter 10 of the General Annex to the Revised Kyoto Convention (RKC), the global framework for simplifying and harmonizing customs procedures—emphasises that decisions affecting traders or individuals must be subject to review. Likewise, the Trade Facilitation Agreement of the World Trade Organization (WTO), in Article 4, requires member states to ensure that importers and exporters have access to mechanisms for review or appeal of customs decisions.

The United Nations Conference on Trade and Development (UNCTAD) also highlights that fair administrative procedures are essential to preserving public trust and ensuring compliance within customs operations. Similarly, the OECD Recommendation on Regulatory Policy and Governance (2012) underscores the need for administrative bodies to maintain accountability, transparency, and procedural fairness in enforcement and adjudication processes.

Global best practices

International practice has moved toward transparent, multi-stage dispute-resolution frameworks, ensuring that decisions can be reviewed independently. This shift has created an opportunity for Customs administrations worldwide to incorporate impartial review mechanisms outside their internal structures.

In the United Kingdom, functions are distinctly separated: tax collection and border control are handled by different institutions, and appeals are adjudicated by an independent lower-level tribunal. Decisions of this tribunal may then be appealed to the Upper Tribunal and subsequently through the regular court hierarchy.

In India, review and appeal functions are assigned to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), a statutory quasi-judicial body established under the Customs Act to adjudicate complex customs and tax disputes.

Similarly, Thailand has adopted a structured, tiered review system. Disputes undergo initial internal review by subject-matter experts, after which appeals may be taken to the national judiciary. Higher-level appeals are handled by the Customs Board of Appeals, which includes external experts, ensuring an additional layer of independent oversight.

To strengthen fairness and accountability

The international examples above demonstrate the value of clearly separating investigative, decision-making, and review functions. Such structures reinforce impartiality, enhance accountability, and strengthen public confidence in the inquiry process. These models reflect globally recognised best practices that promote transparency and fairness in customs administration.

Sri Lanka’s current framework primarily operates through an internal review process. In addition to the above, introducing an external, independent review mechanism—aligned with international standards—would further strengthen trust, impartiality, and institutional accountability. As a border control authority and a key regulator of import and export activity engaged in global trade systems, adopting internationally practised adjudication approaches would enhance the credibility and reliability of Sri Lanka Customs at every level of operation.

By Nadeeka Dissanayake

Enters into MoU with developer Baili Investments Lanka to support sales at 1000-unit high rise

In yet another demonstration of its understanding of customer requirements, the Commercial Bank of Ceylon has entered into a Memorandum of Understanding (MoU) with Baili Investments Lanka Private Ltd. to provide prospective buyers of condominium apartments at a mixed development project in Rajagiriya with access to flexible home loan facilities.

Under this agreement, the Bank will offer home loans to buyers through tripartite arrangements involving the Bank, the developer, and the buyer. Buyers will be able to obtain loans covering up to 75% of the purchase price of their apartments, making it significantly easier for them to own homes in this landmark development.

The project represents an investment of US$ 60 million by Baili Investments Lanka featuring six modern towers with 1,000 luxury apartment units, a shopping complex, cinema and premium lifestyle amenities. The project aims to enhance urban living and aligns with Sri Lanka’s Megapolis and Western Development vision. Construction commenced in May 2023 and the superstructure has already reached the sixth floor. Presales are currently underway, with the full project expected to be completed in September 2029.

Located in Rajagiriya, the development offers a unique blend of urban convenience and a tranquil, green environment, positioning it as one of the most desirable residential projects in Colombo’s suburbs.

Through this partnership, Commercial Bank aims to expand its housing loan portfolio by providing facilities at the lowest interest rates in the market, with repayment plans that include grace periods of up to five years, and structured and tailor-made payment plans. These concessions will enable customers to plan their financial commitments with greater flexibility and confidence. On top of these, the Bank will offer a free Decreasing Term Assurance Policy (DTAP) or a loan protection policy for first time home buyers, covering the life of the buyer to settle the Home Loan through the insurance policy, in case of an unforeseen eventuality.

The Bank said the agreement between Commercial Bank and Baili Investments Lanka not only opens the door for Sri Lankans to secure modern luxury homes but also underlines the Bank’s commitment to supporting quality real estate developments backed by reputed international investors.

Baili Investments Lanka is a BOI-registered Sri Lankan real estate developer backed by Hong Kong investor Mr Tristan Wu, who has over 20 years of multi-sector experience and a proven track record of successful property development ventures in China. The high-rise in Rajagiriya is the company’s first project in Sri Lanka.

The first Sri Lankan bank with a market capitalisation of more than US$ 1 billion, Commercial Bank was also the first bank in the country be listed among the Top 1000 banks of the world, and has the highest capital base among all Sri Lankan banks. The Bank is the largest private sector lender in Sri Lanka and the largest lender to the country’s SME sector. Commercial Bank is also a leader in digital innovation and is Sri Lanka’s first 100% carbon-neutral bank.

HNB Assurance PLC (HNBA) has announced a strong financial performance for the nine months ended 30 September 2025, posting a 38% year-on-year growth in Life Insurance Gross Written Premium (GWP), which is the highest growth among life insurers in Sri Lanka. This exceptional performance underscores the company’s unshakeable tenacity for pushing the envelope of performance, disciplined execution, and unwavering commitment to providing protection and savings solutions that meet the evolving needs of Sri Lankan families.

The Life Insurance business generated a Gross Written Premium of Rs. 13.74 billion for the period, compared to Rs. 9.97 billion in the corresponding period of 2024, reflecting a sharp increase of 38%. Total assets of the Company grew to Rs. 63.2 billion, up 18% from Rs. 53.4 billion a year earlier, while the Life Fund expanded by 24% to Rs. 47.4 billion from Rs. 38.3 billion in December 2024, signaling both strong topline growth and prudent fund management. Profit before tax excluding Life Surplus Transfer stood at Rs. 876 million, reflecting an increase of 13%, while profit after tax rose to Rs. 617 million, up 12% year-on-year.

Meanwhile, Net claims and benefits incurred to policyholders during the period amounted to Rs. 3.25 billion, compared to Rs. 2.12 billion last year which is an impressive increase of 54%, reaffirming HNB Assurance’s steadfast commitment to fulfilling its obligations and supporting customers when it matters most. The Company’s investment portfolio also grew to Rs. 57.3 billion, compared to Rs. 48.5 billion a year earlier, delivering healthy investment income on account of strong yields from fixed-income securities and a diversified asset mix.

Commenting on the company’s performance,  Stuart Chapman, Chairman of HNB Assurance PLC and HNB General Insurance Limited, stated, “We are proud to see HNB Assurance deliver yet another quarter of exceptional growth, driven primarily by the strength of our Life business. This level of performance reflects the trust that customers have placed in our brand and the disciplined financial management that continues to underpin our long-term stability. At a Group level, we remain focused on sustainable growth and resilience, ensuring that we continue to generate consistent value for all stakeholders with GWP reaching Rs. 21.9 billion, up 32% from the corresponding period last year. “

Lasitha Wimalaratne, Executive Director and Chief Executive Officer of HNB Assurance PLC, added, “Our 38% growth in Life GWP represents one of the strongest performances in the industry and reflects the depth of our strategy in expanding customer reach and enhancing value. Our agency and bancassurance channels continue to deliver impressive traction, complemented by new product offerings that address real customer needs. We have also seen a notable increase in policy persistency, demonstrating customer confidence and satisfaction.” He further commented, “Our focus remains on balancing growth with financial prudence. The increase in our Life Fund, together with our strong solvency position and steady profit growth, reinforces our ability to deliver long-term security to policyholders. Claims payments have risen in line with our growing portfolio, which is a healthy indicator of our expanding customer base and our timely settlement culture. We are committed to maintaining this momentum through continued innovation, operational excellence, and a customer-first approach.”