By Roy Denish.
Sri Lanka VAT scam allegations involving Imthiaz Bakeer Markar have resurfaced, although no verified record shows he was charged in the case.
The Sri Lanka VAT scam has returned to public discussion after a ColomboWire article linked former cabinet minister Imthiaz Bakeer Markar to unresolved allegations surrounding the decades-old fraud.
However, the article offered no publicly accessible court judgment, official investigation report or documentary evidence establishing that Bakeer Markar participated in the scheme. He was not identified as an accused in the publicly reported prosecutions reviewed for this article.
The fraud operated between 2002 and 2004. Those responsible used fraudulent refund applications and supporting documents to obtain money from the Inland Revenue Department.
Contemporary reports placed the fraudulent refunds at approximately Rs. 3.57 billion to Rs. 3.9 billion. Some later political articles have cited a figure of Rs. 40 billion, but available Auditor General reporting and court coverage do not support that amount as the value prosecuted.
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Court Proceedings in the Sri Lanka VAT Scam
The criminal case involved 14 accused and developed into one of Sri Lanka’s largest tax-fraud prosecutions. Reports on the proceedings said prosecutors presented more than 200 witnesses and approximately 3,000 documents.
The Colombo High Court convicted several defendants over the misappropriation of Treasury funds. In December 2023, the Court of Appeal upheld the convictions and sentences imposed on three accused.
One defendant identified in later proceedings was Mohammed Kamil Kuthubdeen, described in court reporting as a leading architect of the scheme. Authorities convicted him in absentia after he remained outside Sri Lanka.
ColomboWire alleged that relatives of Bakeer Markar were among those convicted. However, the article did not provide full names, case numbers or judgments establishing the precise relationships it described.
It also alleged that political intervention protected Bakeer Markar from investigation. The publication attributed those claims to unnamed investigators, intelligence sources and political associates. The Morning Telegraph could not independently verify those assertions.
Political Claims Remain Unsubstantiated
The source article further claimed that Bakeer Markar covertly assisted Mahinda Rajapaksa’s presidential campaign in return for protection. However, it incorrectly referred to a 2006 presidential election. Rajapaksa won the election held in November 2005.
No authenticated Presidential Secretariat memorandum supporting the alleged arrangement accompanied the article. Likewise, no evidence was presented for separate claims involving Sajith Premadasa’s 2019 presidential campaign, overseas bank accounts, family education costs or alleged involvement in violence during the 1988–89 unrest.
Bakeer Markar served as chairman of the Samagi Jana Balawegaya after his appointment in September 2024. He tendered his resignation in March 2025, although the party initially said Sajith Premadasa had not accepted it.
Sri Lanka has since strengthened its asset-recovery framework through the Proceeds of Crime Act, No. 5 of 2025. The law gives authorities mechanisms to identify, trace, restrain and recover property derived from criminal offences.
Nevertheless, the legislation does not establish guilt or confirm that authorities have reopened the VAT case against Bakeer Markar. Unless investigators or courts produce supporting evidence, claims connecting him personally to the fraud remain allegations rather than proven findings.
This article responds to claims originally published by ColomboWire.
