Illegal textile trade ripping through local garments

Indians selling smuggled garments are regular visitors who enjoy good profit margins, while undermining local traders. Charundi Panagoda and Deva Athiran report

Illegal textile trading in the Eastlow-priced second-hand garments ness for Indian traders in Batticaern province is taking its toll on the by the kilo and, posing as relatives loa since the arrest of some tradlegitimate textile trade of local of local residents, sell their wares ers and warnings from the courts, businesses. in select areas, sources told the but business is as usual in Kokkad

Tamil and Muslim textile dealers Sunday Times. dicholai, which has a largely Musin Batticaloa told the Sunday Times “Locals buy, thinking they are lim population. that their businesses and income getting a bargain, but in fact they The Indian traders come on touhave been seriously affected by Inare being cheated. For example, rist visas but engage in business or dians who smuggle in garments saris five yards long are sold as work as labourers, thus violating and clothing items. The businesssix-yard saris,” another local trader tourist visa regulations, Police people said they were helpless and said. “The Indians must be getting spokesperson Ajith Rohana told that the Government should do good profits, otherwise how could the Sunday Times. something about the problem. they cover their expenses, includIt has been observed that Police

“We have spoken to the Trader’s ing air tickets?” action has been marginal. This Society and the Police about our The illicit textile trade affects onmonth, two Indian women were problems with the unlicensed Indily the small textile businesses, not arrested in Kalmunai on charges of an traders, but nothing has been the big business mudalalis. A Tamil doing business while on tourist vidone,” one trader told the newspatextile trader told the Sunday sas. Last month, only one such arper. “When we started voicing our Times that the Indians do not have rest was made, in Putthalama. concerns, there was a lull and the to pay duty, income tax, wholesale “Generally, we take action when Indian traders were not to be seen. taxes, or VAT. “They only pay for there is a noticeable increase in But they are back. We have no rent and travel. We local traders the number of traders, or if local idea where they go after they do have to take out loans to pay our traders are suffering,” Mr. Rohana their business, but we know that staff,” he said. said. some of them were arrested in KaSome Indian traders are also beA Customs official told the Sunluvanchikudi.”During the war the illieved to be dealing in drugs. day Times that Indians sneak in legal textile trade was concentraIn the past, Indian traders would textiles in passenger luggage. ted in the North East, and has inappear only during festive sea“There are hundreds of regular pascreased since the end of the war. sons, when they would make a killsengers going up and down beAccording to local trader K. M. M. ing at the expense of local busitween India and Sri Lanka purely Kaleel, the Indians continue to do nesses. But lately they have been for this purpose,” he said. “Airport business in Thirukovil, Akkaraipafocusing their business around the officials don’t have the resources ttu, Kalmunai in the Ampara dismonthly pay day for government to check all items. Either the autrict, and to a lesser degree in Batemployees. Some even sell goods thorities crack down on textile ticaloa. on credit. smuggling altogether, or there

The Indian traders purchase There has been a drop in busi- should be a proper tax.”