Sri Lanka Customs has uncovered a major cigarette smuggling operation after intercepting a Dubai shipment falsely declared as bedsheets, officials confirmed.

The container, which arrived at the Port of Colombo in November 2025, was found to hold 3.38 million foreign cigarette sticks during a customs inspection. Officials estimated the consignment’s market value at Rs. 507 million, with state tax revenue evaded of approximately Rs. 460 million.

According to investigators, the shipment was imported under the name of a private company based in Battaramulla, with shipping documentation listing only bedsheets. The discrepancy was flagged during a follow-up inspection that prompted closer scrutiny of the cargo manifest.

Customs investigators are now tracing the import chain and the role of the Battaramulla-based firm. No arrests or suspect identities have been disclosed publicly.

The seizure highlights persistent vulnerabilities in import declarations through the Dubai–Colombo cargo corridor, which has previously been used to smuggle electronics, narcotics and high-tax consumer goods. Cigarette smuggling has long been a target for Customs enforcement, given the heavy excise duties imposed on tobacco imports in Sri Lanka.

The detection comes against a backdrop of intensified Customs enforcement during the Avurudu period, with multiple raids reported over the past week. The Battaramulla shipment is one of the largest cigarette seizures of 2026 by stick count, and officials have signalled further inquiries into the supply network behind the false declaration.