Around 300 brand-new vehicles have been stranded at Hambantota Port for over six months, with importers alleging that Sri Lanka Customs is demanding taxes amounting to nearly three times the vehicles’ original value to secure their release.
Importers say they complied with all import regulations in force at the time of purchase, but Customs has since imposed additional levies, including a surcharge of nearly 50 percent of the applicable duty. In several cases, the total tax liability reportedly exceeds Rs. 10 million per vehicle.
The prolonged delay has caused severe financial and emotional distress, with owners claiming their repeated appeals have gone unanswered while their vehicles remain stuck at the port. The vehicles were imported under the Cross Border Letter of Credit (LC) system, commonly used for personal vehicle imports, but owners say they are now trapped in legal and administrative complications with no clear timeline for release.
At a press conference yesterday, affected importers appealed to President Anura Kumara Dissanayake to intervene, saying many families are struggling after investing their life savings or taking loans to purchase a single vehicle. Some owners also expressed concern over the condition of their vehicles following recent cyclone-related damage, saying Customs has provided no updates.
Sri Lanka Customs spokesperson Chandana Punchihewa said the vehicles are linked to an ongoing court case related to Cross Border LC imports and that a gazette has been issued preventing their release until the case is concluded. He noted that owners may either take their vehicles after paying standard taxes without registering them until the case ends, or pay additional taxes and penalties to register them immediately.
However, importers argue that both options are unfair, saying they are being penalised for rule changes made after their vehicles were shipped, leaving hundreds of families caught between court proceedings, Customs decisions and mounting financial hardship.
