Sri Lanka motor trade urges recall of vehicle valuation, import processesNewsThe Ceylon Motor Traders Association (CMTA) this week said Sri Lanka’s vehicle import framework requires urgent recalibration to ensure fairness, transparency, and the protection of state revenue. The CMTA states that one of the most critical issues that must be addressed is the automatic 15 per cent reduction applied to the CIF value of used vehicle imports when calculating import duties. The CMTA believes this practice creates a structural imbalance in the market and results in a significant erosion of import duty revenue to the State. When two identical zero-mileage vehicles are assessed at different CIF values purely on the basis of a procedural registration classification, it distorts competition, disadvantages compliant authorised agents, and undermines equitable tax collection. When combined with under-declared transaction prices and manipulated valuations, duty is calculated on figures that are significantly lower than actual market value.

Source: Sunday Times February 19, 2026 06:09 UTC