A spurt in gold smuggling from Colombo subsequent to the ethnic war in
Sri Lanka has forced Indian customs intelligence to believe that a large quantity of illegally-held gold is being smuggled out of the country.
Indian customs officials believe that gold reserves belonging to the LTTE had been tapped into, and were being smuggled out in a slow manner.
According to Indian media since January this year, Indian customs had made 29 seizures of smuggled gold at the Chennai airport which were inbound from Colombo.
The increase in cases of smuggling from Colombo had forced the customs intelligence to look into the pattern seriously and enquiries by them had indicated that somebody was attempting to smuggle illegally stashed gold to India where the precious metal is always in demand.