Sri Lanka Customs has launched an official investigation into a consignment of BYD electric vehicles over concerns that the motor capacity may have been underdeclared, potentially reducing the applicable excise duties.
Appearing before the Committee on Public Finance (COPF), Customs Senior Director and spokesperson Seevali Arukgoda stated that the inquiry was prompted by complaints from industry stakeholders and information provided by the Deputy Minister of Finance.
The vehicles in question were declared as having 100-kilowatt (kW) motors. However, Customs officials suspect they may actually be equipped with 150kW motors—a higher classification that would attract significantly greater duties.
The delay in the investigation has been attributed to the lack of cooperation from the importer, John Keells CG Auto (Pvt) Ltd, the official agent for BYD in Sri Lanka. “We informed them of the need to inspect the motors, but they claim it is a process, so the delay is from their side,” Arukgoda told the COPF.
Authorities are also examining whether the vehicles’ software may have been tampered with to falsely display a reduced motor output. The University of Moratuwa has been engaged to conduct technical testing and verify the actual specifications of the motors.
COPF Chair MP Harsha de Silva stressed the importance of ensuring that all testing is conducted in line with international standards, given the involvement of a global automotive brand.
The investigation follows the detention of nearly 1,000 BYD vehicles at the Colombo Port. While the importer maintains that the EVs are equipped with 100kW motors and are fully compliant, Customs is awaiting conclusive test results before issuing a final determination.
