• Sri Lanka Customs released nearly 5,000 vehicles in six months, boosting government revenue
• Revenue mobilisation from vehicle imports on track to meet annual targets, supporting fiscal objectives

Sri Lanka Customs has released close to 50,000 motor vehicles between December 2024 and June 2025, contributing over Rs. 149 billion in tax revenue to the government, the Finance Ministry said.

In the Final Budget Position Report for 2024, the Finance Ministry said according to the Statistics Division of Sri Lanka Customs, a total of approximately 49,541 motor vehicles, including 14,047 motor cars, were released from customs during the period from 18 December 2024, to 3 June.

It said that the release of these motor vehicles has contributed Rs. 149.1 billion to government tax revenue, which “reflects robust performance in revenue mobilisation and indicates that the government is on track to meet its annual revenue targets from motor vehicle imports.”

From the complete lifting of the import ban on motor vehicles in February, the government aimed at mobilising the fiscal objective of approximately 1.3% of GDP in tax revenue from motor vehicle imports in 2025, with a cautious approach on the reserve position of the country.

“The resumption of motor vehicle imports represents a measured policy shift, carefully balancing the objectives of reviving economic activity, enhancing transport infrastructure, and strengthening government revenue, while maintaining prudent external sector management,” the Finance Ministry said in the report.

From 2014 to 2023, taxes on motor vehicles were administered under a composite excise duty regime, but following tax reforms in the last year or so, the structure was disaggregated into multiple components.

Nevertheless, excise duty remains the principal source of revenue from motor vehicle imports.