Govt Earns Rs. 136 Billion from Vehicle Imports in Just Four Months

Sri Lanka’s government has earned Rs. 136 billion from vehicle imports between January and April 2025, according to data presented by Customs officials to the Committee on Public Finance (CoPF) this week.

The revenue, drawn from VAT, Customs Duty, and Luxury Tax, marks strong progress toward the annual target of Rs. 450 billion in vehicle-related income. Officials expressed confidence that the full-year goal is achievable.

Deputy Treasury Secretary A.K. Seneviratne reported that 596 Letters of Credit (LCs) had been opened for vehicle imports in 2025 so far, and $272 million worth of vehicles have already been cleared. He highlighted that for every dollar spent on vehicle imports, the government is currently earning $1.70 in return, exceeding the earlier forecast of $1.50 per dollar.

When asked during the session if this unexpected revenue success might lead to lower vehicle taxes, Seneviratne explained that any adjustments are unlikely, as tax decisions are linked to broader annual fiscal plans.

The government resumed special vehicle imports in December 2024 and lifted the general suspension on vehicle imports for goods and private transport in February 2025, implementing strict regulations to manage import volume, protect foreign reserves, and enhance public revenue.