A police investigation into an accident involving a sports utility vehicle said that it was one of two SUVs to be given as a donation by the UN agency to World Food Program (WFP) to Shiranthi Rajapaksa's 'Siriliya Saviya Foundation' and that neither party had paid import taxes which can be up to 350 per cent.
A finance ministry statement said that it had initiated an investigation to find out how the WFP had transferred ownership of the vehicles to locals without prior approval.
The incident was brought to light when a vehicle imported for a UN agency to carry out tsunami relief work in 2005 was involved in an accident on June 10 in Tangalla, in the southern province.
The vehicle had been used illegally, violating Sri Lankan laws, the ministry said.
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The ministry said that hundreds of vehicles had been imported duty free and most of them have disappeared and efforts will be made to trace them and recover the revenue that is due to the state.
The ministry has also directed the Customs chief to start an internal investigation to find out if there had been any lapses on the part of the Sri Lanka customs in allowing the UN agency to transfer the possession of vehicles imported duty free into the country and not taking action for over three years to recover taxes due to the state.
An investigation is currently being carried out into the bank account of the 'Siriliya Saviya.' The former First Lady is the patron of the foundation.
The Rajapaksa clan has dubbed the investigations against several of the former regime members as a political witch- hunt.
Rajapaksa has charged that his successor Maithripala Sirisena's government was out to jail all members of his family, including himself.
The government says many complaints of corruption and wrongdoings by the Rajapaksa's when in power have surfaced after his defeat to Sirisena in the January presidential election.