Sri Lankan authorities are conducting enhanced audits to identify smuggled and undervalued imported goods, with the Deputy Minister of Industry warning traders to cease dealing in illegally imported products.

Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe has cautioned commercial traders against purchasing and reselling smuggled goods, tax-evaded imports, or products brought into the country through undervalued documentation. According to Abeysinghe, government authorities have initiated "backward audits" that trace the supply chain of goods from retail outlets through to suppliers and importers to verify that proper Customs duties have been discharged and that items have not been artificially undervalued.

In guidance issued via social media, the deputy minister emphasized that traders must retain invoices for all merchandise purchased for resale, with clear identification of manufacturers or importers on documentation. He also flagged the use of "on approval" bills as unlawful, noting that no legally recognized document by this name exists in Sri Lankan commerce. The ministry has established a mechanism for citizens to report imported goods being sold at suspiciously low prices or suspected dumping activities.

The warnings follow enforcement actions conducted by the Consumer Affairs Authority on August 18 and 19, during which officials raided 108 establishments nationwide selling imported cosmetics and footwear. The operation resulted in the seizure of goods valued at approximately Rs. 1.5 million. Notably, 84 of the inspected businesses could not produce adequate documentation—including proper receipts, bills, or invoices—demonstrating the legal acquisition of their stock. The raids examined imported skin-lightening creams, cosmetics, perfumes, hair products, and sports shoes.