Understanding the 323 Container Controversy: Procedure, Possible Failures & Accountability Questions
The recent controversy over the “323” containers held at Sri Lanka’s main port has created confusion and suspicion among the public, fuelled by unclear government communication and claims such as those made byMP Archuna alleging LTTE arms smuggling. To restore trust, it is essential to clarify the official container clearance process, identify where procedural lapses may have occurred, and ask critical questions to the responsible authorities.
1. Container Clearance Process at Sri Lanka Ports
The clearance of imported containers in Sri Lanka involves two primary entities:
- Sri Lanka Customs (SLC): The regulator responsible for enforcing laws under Customs Ordinance of Sri Lanka, inspecting cargo, collecting duties, and authorizing release.
- Sri Lanka Ports Authority (SLPA): The operator of the port terminals, responsible for container handling, storage, and physical release after Customs clearance.
Step-by-Step Process
1. Pre-Arrival Manifest Submission
- Importer or Customs House Agent (CHA) must submit an Electronic Manifest (E-Manifest) to Customs at least 72 hours before the ship arrives or upon departure if less than 72 hours remain.
- This allows Customs to conduct risk profiling before the cargo reaches
2. Arrival and Delivery Order
- After vessel arrival, the shipping line issues a Delivery Order to the importer or CHA, authorizing container pick-up.
3. Customs Declaration (CusDec)
- Importer/CHA files a Customs Declaration electronically via the ASYCUDA
- Includes detailed info on goods: HS codes, quantity, value, origin, invoice, packing list, and import permits.
4. Risk Assessment and Inspection Channels
- Customs assigns containers to Green (auto-release), Yellow (document check), or Red (physical inspection) channels based on risk factors.
- Containers flagged red must undergo physical inspection and scanning before
5. Payment of Duties and Fees
- Importer pays all applicable customs duties, VAT, port handling fees, and taxes prior to release.
6. Final Release by Customs & SLPA
- Customs grants clearance once procedures are completed and documentation
- SLPA releases the container only after Customs clearance and fee payments are confirmed.
7. Container Delivery
- The container is handed over to the consignee or their agent for
2. Possible Government and Official Failures
Despite this robust procedure, the 323-container incident suggests several areas of failure:
· Lack of Transparency:
The government and Customs have been vague about the contents, consignees, and exact clearance status, fuelling rumors and distrust.
- Procedural Deviations Under Congestion: (starting late December 2024 reaching peak in January 2025)
Due to capacities at port and other private terminals for cargo inspection are limited, congestions had been developed, containers were reportedly cleared via automated or expedited processes, potentiallybypassing physical inspections for red-flagged cargo
— contravening the normal Customs Risk Management procedure.
- Documentation Gaps:
Public reports indicate missing or incomplete manifests, invoices, or payment records, raising questionson whether proper declarations and duty payments were made.
· Accountability and Oversight Deficiencies:
It is unclear which officials authorized any procedural relaxations, who reviewed clearance decisions, and if standard audit protocols were followed.
· Political Interference:
Statements like MP Archuna’s, coupled with official silence, suggest possible attempts to politicize orobscure facts, undermining law enforcement credibility.
3. Critical Questions to pose to Government & Authorities
To ensure transparency and restore public confidence, the following questions should be addressed publicly:
1. Who is the Importer of Record or Consignee for all 323 containers or more?
- Provide names, business registrations, and contact
2. Were all pre-arrival manifests submitted within the mandated 72-hour window?
- If not, why were exceptions made & who made the exceptions?
3. What exact goods were declared in the Customs Declarations (CusDec) for these containers?
4. Which risk assessment channels were assigned to these containers (Green, Yellow, Red)?
- Were any red-flagged containers released without physical inspection? If yes, who authorized it & why?
5. Was the payment of duties, taxes, and port fees completed for every container?
- Provide bank transaction records or receipts or are these available?
6. Who signed off on the inspection reports, including “Inspection Act” endorsements, if any?
- Are these inspection records available for audit?
7. What measures were taken to ensure no prohibited items, including arms or hazardous goods, were inside these containers?
- Were scans and physical inspections conducted per regulation – if not, why?
8. If procedural relaxations were implemented due to congestion, what official directives authorized these?
- Provide copies of internal memos or ministerial orders – nothing can be
9. Has any action been undertaken to do thorough Post-Clearance Audits (PCA) which has been authorized to Customs under Customs Ordinance?
- Even after this became a public debate?
10. Has the Finance Ministry been involved in decisions regarding container release or payments?
- Who holds final authority for such decisions in the Finance Ministry?
11. What is the timeline of events from arrival to release of these containers?
- Can this timeline be independently verified?
- How is Customs ensuring that political statements, such as those made by MP Archuna, do not unjustly influence or distract ongoing investigations?
4. Conclusion
The 323container issue exposes serious lapses in procedural clarity and governmental transparency. Without clear answers and public disclosure of documents, suspicions will continue to grow, damaging Sri Lanka’s economic credibility and national security including the credibility of the Government & its Ministers. It is critical that:
- All relevant documents and records are released publicly or through a formal
- Investigations strictly follow Customs laws and the Sri Lanka Establishment
- Responsible officials are held accountable for any violations or
- Communication from government bodies is prompt, clear, and factual to dispel
The 323 container controversy is more than just a logistics issue — it is a test of governance, transparency, and national security. When standard procedures are overlooked and public trust is ignored, rumors and suspicions thrive, undermining Sri Lanka’s economic integrity and sovereignty. The government must act swiftly and openly, provide full disclosure, and hold accountable those responsible for any procedural breaches. Only through transparency and rule of law can we safeguard our ports, protect our people, and restore confidence in our institutions. The nation deserves nothing less.
Shenali D Waduge