Sri Lanka earns Rs. 136 Billion from vehicle imports in first four months of 2025

The Government of Sri Lanka has earned Rs. 136 billion in revenue from motor vehicle imports between January and April this year (2025), according to Sri Lanka Customs.

This amount includes income from Value Added Tax (VAT), Customs Duty, and the Luxury Tax.

The disclosure was made on Tuesday (June 3) during a meeting of the Committee on Public Finance (CoPF), chaired by MP Dr. Harsha de Silva.

Officials stated that the Government aims to collect Rs. 450 billion from vehicle imports in 2025. Based on the current revenue performance, they expressed confidence in reaching this target.

Deputy Treasury Secretary A.K. Seneviratne revealed at the meeting that 596 Letters of Credit (LCs) had been opened so far this year for vehicle imports. He noted that vehicles worth $272 million have already been cleared.

Seneviratne said the Government earns around $1.70 in revenue for every Dollar spent on vehicle imports, which is higher than the expected $1.50 per Dollar. This, he said, was a positive sign for the country’s revenue targets.

During the session, CoPF Chairman Dr. Harsha de Silva asked whether the unexpected revenue could lead to a reduction in vehicle taxes. In response, Seneviratne said such decisions are not possible at this stage, as the figures are based on yearly targets and align with the Government’s overall fiscal plans.

Sri Lanka resumed vehicle imports for special services on December 14, 2024. The temporary suspension on imports for goods transport and private use was lifted on February 1, 2025.

However, strict regulations remain in place to control excessive imports, manage foreign exchange, and increase State income.