Sri Lanka’s Vehicle Import Controversy: Allegations of Regulation Violations
- CNL Reporter
- March 11, 2025
- Business News
- NEWS OF THE DAY
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Sri Lanka’s recent resumption of vehicle imports has sparked controversy, with allegations that a batch of 22 vehicles from a total of 156 imported units violates import regulations. The vehicles, manufactured in 2022, reportedly do not comply with newly introduced rules governing the age of imported automobiles, official sources claim.
Following a five-year suspension, Sri Lanka lifted vehicle import restrictions on February 1, 2025, under Gazette Extraordinary No. 2421/44. The revised regulations stipulate that the age of a vehicle must be calculated from its Date of Manufacture to the date of the Bill of Lading or Airway Bill. Any violation of this stipulation is considered unlawful.
The Sri Lanka Automobile Association in Japan (SLAAJ) has raised concerns, alleging that a company is attempting to import vehicles that do not meet the regulatory criteria. The association has lodged a formal complaint, urging authorities to take action against any potential violations.
The controversy intensified when 197 vehicles arrived in Sri Lanka aboard the NYK vessel. Reports suggest that some of these vehicles were imported using falsified manufacturing dates. Customs officials are investigating claims that a Japanese exporter, in collaboration with select Sri Lankan importers, manipulated export inspection certificates without verifying the actual manufacturing dates from the vehicle manufacturer. This alleged fraud aims to bypass restrictions and facilitate the importation of ineligible vehicles.
Previously, vehicle imports to Sri Lanka were permitted only if the vehicles were within three years of their registration year. However, the revised regulations have shifted the requirement from registration year to manufacturing date. If the exact manufacturing date is unknown, the default date is considered January 14 of the respective year. Under this rule, a vehicle manufactured in February 2022 would be ineligible for import as of March 2025, exceeding the three-year limit.
To regulate the import process further, a new extraordinary gazette was issued on January 27, 2025, under the Import and Export Control Act. This gazette, signed by President Anura Kumara Dissanayake in his role as Minister of Finance and Economic Development, immediately introduced updated guidelines for vehicle imports. These regulations allow for the re-importation of certain vehicles and establish clear criteria for importers and commercial banks involved in transactions.
A crucial provision under the new rules grants the Director of Sri Lanka Customs the authority to release vehicles for which letters of credit were issued between December 18, 2024, and January 27, 2025. Furthermore, vehicle imports are now permitted between December 18, 2024, and July 31, 2025, subject to compliance with the updated regulations.
As investigations continue, authorities emphasize the need for strict enforcement to ensure compliance and maintain fair trade practices. The outcome of these inquiries could have significant implications for the future of Sri Lanka’s vehicle import policies and trade integrity.
