The Supreme Court has ruled that a transit passenger carrying restricted or prohibited goods through Sri Lanka remains subject to the jurisdiction of Sri Lanka Customs and applicable exchange-control law.

The judgment arose from a long-running case concerning 50 slabs of gold seized from an Indian national at Bandaranaike International Airport in 1991.

The passenger had been travelling through Sri Lanka in transit when the gold was detected.

The legal dispute ultimately concerned whether possession of the restricted goods by a transit passenger fell within Sri Lankan Customs jurisdiction and relevant provisions governing importation and exchange control.

Supreme Court allows Attorney General's appeal

The Supreme Court rejected the view that a transit passenger carrying restricted or prohibited goods in these circumstances falls outside Sri Lanka Customs jurisdiction.

The Court held that such an interpretation was inconsistent with provisions of the Customs Ordinance and Exchange Control Act.

The Supreme Court allowed an appeal filed by the Attorney General and set aside the contrary Court of Appeal position.

The judgment was delivered by Justice Arjuna Obeyesekere, with Chief Justice Preethi Padman Surasena and Justice Mahinda Samayawardhena agreeing.

A court ruling, not a new Customs regulation

The decision clarifies the application of existing Sri Lankan law to transit passengers carrying restricted or prohibited goods.

It should not be described as a newly introduced Customs regulation.

The underlying seizure occurred in 1991, but the Supreme Court judgment has continuing relevance to the legal treatment of restricted goods carried through Sri Lankan airports by transit passengers.