Sri Lanka Customs crackdown on BYD risks deterring EV investments
- CNL Reporter
- August 31, 2025
- News, Political
- BYD
- 0 Comments
Sri Lanka Customs has detained nearly 1,000 more BYD electric vehicles over disputed motor capacity declarations, raising fears that bureaucratic rigidity could drive global EV giants away from the island.
The seized shipment includes Atto 1, Atto 2, Atto 3, and Dolphin models, on top of a previous batch of 1,000 Atto 3s released only after importers provided a bank guarantee. Officials claim discrepancies in declared capacity, with some units listed as 49kW but suspected to be 70kW.
Customs justifies the detentions by citing Sri Lanka’s excise tax regime, where duty rises steeply with motor output Rs. 2.4 million for a 100kW vehicle versus Rs. 5.4 million for a 150kW unit.
However, importers and industry experts argue the action shows a lack of understanding of EV technology. “BYD and other manufacturers routinely configure identical motors differently using software. It’s standard international practice, not tax evasion,” a JKCG Auto spokesman said.
Analysts warn the dispute could inflict heavy financial losses on importers, delay deliveries to customers, and damage Sri Lanka’s standing with international EV makers. “If such uncertainty persists, companies like BYD may scale back or withdraw from the market,” one trade source cautioned.
