It is reported the racket has been carried out with the involvement of certain Customs officers and without paying the due taxes.

A tax of minimum Rs. 2,000 is levied for a pair of shoes imported into Sri Lanka from a foreign country.

Meanwhile, it is reported that these illegally imported foreign-manufactured footwear are released to the market at prices much lower than the footwear produced locally.

The country has incurred annual tax revenue losses of around Rs. 35 billion due to such import rackets.