Over 300 legally imported used motor vehicles have been detained at Hambantota International Port and Colombo Port for more than six months, leaving vehicle owners facing escalating costs and no clear resolution in sight. The prolonged delay has raised serious concerns among affected individual importers, who state that the situation is causing severe financial and emotional distress.
During a recent press conference, individual importers who have imported vehicles for their personal use explained that they are being subjected to inconsistent Customs tax demands. In some instances, the taxes requested amount to nearly three times the actual value of the vehicles. The group also highlighted that the ongoing delay has resulted in an estimated loss of approximately LKR 4.5 billion in potential government revenue.
The extended detention of the vehicles has created a significant financial crisis for many individual importers. Demurrage charges have risen to between LKR 30 to 50 lakhs per vehicle and continue to increase daily. Several affected individuals revealed that they have been compelled to secure loans from external sources, often at high interest rates, solely to meet these mounting demurrage obligations. This has occurred despite the vehicles being imported legally under approved Cross Border Letter of Credit arrangements.
As mentioned by an individual importer, she is facing an additional and unbearable financial burden on a used motor vehicle imported as follows:
Applicable Duty LKR 16.5 Million
Customs Penalty on duty: LKR 8.5 million
Demurrage: LKR 4 million
Total Additional Burden: LKR 12.5 million
One individual importer stated that all existing regulations were followed in good faith, yet they now find themselves overwhelmed by debt through no fault of their own.
The importers are urgently appealing to the relevant authorities to consider immediate relief measures. These include temporary demurrage concessions, structured payment arrangements, and consistent application of Customs regulations. They also emphasized the importance of open and constructive dialogue between officials and stakeholders to bring about a fair resolution.
The group expressed appreciation to media institutions for highlighting the issue and remains hopeful that timely and compassionate government intervention will prevent further financial harm.
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