Category: Daily Financial Times

Toyota Lanka has strengthened its presence in the Central Province with the enhancement of its after-sales service capabilities in Kandy, as part of a wider nationwide expansion strategy aimed at bringing world-class automotive services closer to customers.

The company says the initiative reflects its commitment to customer convenience, technical excellence, and long-term investment in Sri Lanka’s automotive sector:

‘Toyota Lanka continues to shape the future of automotive ownership in Sri Lanka through a commitment to excellence, innovation, and customer care. Yet, our story has never been defined solely by vehicles. It has been shaped by the people who drive them, the families who rely on them, and the trust that has connected generations of customers to the brand. Every step forward reflects our commitment to bringing global standards, trusted expertise, and greater convenience closer to customers across the island.

In Kandy, we are proud to mark a significant elevation in our after-sales service capability, redefining the way customers experience care for their vehicles in the Central Province. This is part of a broader and deliberate growth of Toyota Lanka’s nationwide network, which continues to strengthen its footprint across Sri Lanka through strategically positioned 3S facilities, bringing together Sales, Service, and Spare Parts under one integrated customer experience designed to keep dependable support within easy reach. Toyota Lanka’s network has grown to more than 20 facilities across the island, reflecting one of the most ambitious network expansion initiatives in the automotive industry. With plans to extend its footprint to over 30 facilities by the end of 2026, Toyota Lanka is steadily bringing world-class Toyota standards closer to customers, ensuring greater accessibility, convenience, reassuring ownership experience, and peace of mind wherever their journeys take them.

At the heart of Toyota Lanka’s strength lies a global standard that is not simply adopted but lived every day. Our after sales operations are built on Toyota’s internationally proven engineering systems, advanced diagnostic technologies, and highly trained technical expertise. From hybrid system precision diagnostics to specialised tools and genuine parts assurance, every vehicle is treated with the discipline and care that earned Toyota Motor Corporation’s Customer Delight Excellence Award in both 2024 and 2025, ensuring customers receive not just maintenance, but lasting confidence in every journey they take.

Yet technology alone does not define Toyota Lanka. What truly sets us apart is a deeply rooted customer-first mindset. Every interaction is guided by transparency, care, and long-term responsibility. Whether it is routine servicing or complex technical support, our commitment remains the same: to deliver an ownership experience that has helped Toyota earn recognition as Sri Lanka’s No. 1 Product Brand by LMD Brands Annual, Most Loved Brand at the LMD Readers’ Choice Awards 2026, and most recently, the nation’s No. 1 Most Loved Automobile Brand.

Supporting this commitment is the Toyota Lanka Auto Academy, which continues to shape the future of automotive expertise in Sri Lanka. Through structured training, hands-on technical exposure, and globally aligned learning frameworks, the Academy ensures our people grow alongside automotive innovation. It is more than a training ground; it is a place where skill meets purpose, and where the next generation of Toyota professionals is nurtured to uphold the brand’s global reputation.

Our journey in Sri Lanka spans decades, built on consistency, resilience, and trust. From our early beginnings to becoming the nation’s authorised distributor of Toyota vehicles, we have grown alongside generations of customers who have placed their confidence in us. That trust is never assumed; it is earned every single day through dedication, precision, and care.

This renewed level of after sales capability in Kandy is therefore more than an operational milestone. It is a reaffirmation of who we are. Guided by the Toyota LIFE philosophy, which stands for Loyalty, Integrity, Fairness, and Ethics, Toyota Lanka continues to embed its values into every aspect of its operations. More than a guiding principle, Toyota LIFE defines how we serve, how we grow, and how we stand with our customers and communities. It influences every interaction, ensuring that trust, respect, and responsibility remain at the heart of the Toyota experience in Sri Lanka.

Because at Toyota Lanka, every vehicle we care for carries more than engineering. It carries memories, families, and journeys we are honored to protect’.

An unbeaten 81-run partnership off 64 balls between Hansima Karunaratne and Harshitha Samarawickrama helped Sri Lanka to a seven-wicket victory over the Netherlands in their second ICC Women’s T20 World Cup warm-up match played at Derby on Tuesday.

Having chosen to bat, the Netherlands (ICC Ranking: 14) made three consecutive partnerships over 40 with Heather Siegers anchoring the innings. She was dismissed for 48 runs from 32 balls (7 fours) with the Netherlands at 89-2 before Sterre Kalis made 45 from 41 (5 fours). Sri Lanka (ICC Ranking: 6) then hit back taking the final four wickets for 11 runs as the Dutch posted 143-6.

In response, Sri Lanka lost two wickets inside the powerplay to sit at 30-2 before the Netherlands really turned the screw when Hasini Perera departed for 31 from 20 balls (6 fours). But then, Harshitha Samarawickrama (36* off 34 balls, 3 fours), standing in as captain for Chamari Athapaththu, and Hansima Karunaratne (54* off 42 balls, 6 fours) combined for a huge partnership to take the victory in the final over.

Sri Lanka opens the whole tournament against hosts England on 12 June, having won both their warm-up matches against Pakistan and the Netherlands, while the Netherlands will play their first-ever World Cup game when they take on Bangladesh at Edgbaston on 14 June.

Scores:

Netherlands Women 143-6 (20) (Heather Siegers 48, Sterre Kalis 45, Babette de Leede 26, Malki Madara 1/12, Sugandika Kumari 1/26, Kavisha Dilhari 1/13)

Sri Lanka Women 146-3 (19.1) (Hasini Perera 31, Harshitha Samarawickrama 36*, Hansima Karunaratne 54*)

Sri Lanka’s economic recovery remains one of the country’s most urgent national priorities. Since the economic crisis of 2022, policymakers, businesses, and international partners have focused on stabilising inflation, restructuring debt, strengthening public finances, restoring investor confidence and rebuilding foreign exchange reserves. These efforts are essential and have contributed to signs of economic stabilisation. However, economic recovery should not be measured solely by financial indicators or short-term improvements.

A truly successful recovery must create the foundations for long-term resilience, competitiveness, and inclusive growth. This is where sustainable development becomes critically important. If Sri Lanka is to build an economy that can withstand future shocks while improving the quality of life for its people, sustainability must become an integral part of national economic planning rather than a separate environmental agenda.

The global economy is changing

Around the world, economic development strategies are increasingly being shaped by sustainability considerations. Governments, investors, multinational corporations, and international financial institutions are placing greater emphasis on environmental responsibility, social inclusion, and long-term resilience. Concepts such as renewable energy, green finance, circular economies, responsible production, and climate adaptation have moved from the margins of policy discussions to the center of economic decision making.

This shift is not driven solely by environmental concerns. It is also a response to changing economic realities. Climate change, resource scarcity, energy insecurity, and environmental degradation have become significant economic risks. Countries that fail to adapt may find themselves less competitive in global markets and less attractive to investors.

For Sri Lanka, understanding and responding to this global transformation is becoming increasingly important. The country’s recovery efforts must take place within an international environment where sustainability is increasingly linked to trade, investment, and economic competitiveness.

Environmental challenges have economic consequences

Sri Lanka’s economy remains highly dependent on natural resources and climate-sensitive sectors. Agriculture, fisheries, tourism, and energy production are all directly influenced by environmental conditions. As climate-related events become more frequent and severe, the economic consequences are becoming harder to ignore.

Floods damage infrastructure, disrupt transportation networks, and reduce agricultural output. Droughts affect crop production, increase food prices and place pressure on water resources. Unpredictable weather patterns create uncertainty for farmers and businesses alike. Coastal erosion and environmental degradation can threaten tourism destinations.

These challenges demonstrate that environmental sustainability is not only an ecological issue but fundamentally an economic issue. Failure to address environmental vulnerabilities can undermine productivity, increase public expenditure, weaken investor confidence, and slow economic growth.

Building resilience against these risks should therefore be considered an essential component of Sri Lanka’s economic recovery strategy.

Sustainability and export competitiveness

Sri Lanka’s export sector remains a critical source of economic growth and foreign exchange earnings. However, international markets are evolving rapidly. Consumers, investors, and regulators increasingly expect businesses to demonstrate responsible environmental and social practices.

Major export industries, particularly apparel manufacturing, are facing growing pressure to reduce carbon emissions, improve energy efficiency, manage waste responsibly, and adopt sustainable production processes. Similar expectations are emerging in agricultural exports, fisheries, and manufacturing sectors.

International buyers are increasingly incorporating environmental standards into supply chain requirements. In some markets, products that fail to meet sustainability standards may face reduced demand or encounter regulatory barriers. As a result, sustainability is becoming more than a corporate responsibility initiative. It is increasingly a requirement for maintaining access to international markets and remaining competitive in the global economy. For Sri Lanka, embracing sustainable production practices can help strengthen export performance while enhancing the country’s reputation as a responsible trading partner.

The role of renewable energy

One of the most promising opportunities for sustainable economic development lies in renewable energy. Sri Lanka possesses significant potential for solar, wind, and other renewable energy sources. Harnessing these resources could generate substantial economic and environmental benefits.

The country currently spends significant amounts of foreign exchange on fuel imports. Expanding renewable energy capacity can reduce dependence on imported energy, improve energy security, and lessen vulnerability to global energy price fluctuations.

At the same time, renewable energy investments create employment opportunities across multiple sectors, including construction, engineering, technology, maintenance, and research. They also encourage innovation and attract investment into emerging industries.

A stronger renewable energy sector could therefore contribute directly to economic growth while supporting environmental objectives. It represents one of the clearest examples of how sustainability and development can reinforce one another.

Supporting Small and Medium Enterprises

Small and Medium Enterprises (SMEs) form the backbone of Sri Lanka’s economy. They generate employment, support local communities, and contribute significantly to economic activity. However many SMEs face challenges when attempting to adopt sustainable business practices.

Limited access to finance, insufficient technical knowledge, and resource constraints often prevent smaller businesses from investing in energy-efficient technologies or environmentally responsible production methods. Without targeted support, many SMEs may struggle to participate in the growing global shift toward sustainability.

Government policies can play a vital role in addressing these barriers. Access to green financing, tax incentives, training programs, and technical assistance can help businesses modernise their operations while improving efficiency and competitiveness.

Supporting SMEs in the transition toward sustainability is important not only for environmental reasons but also for ensuring that economic recovery remains inclusive and benefits communities throughout the country.

Investing in human capital and innovation

Sustainable development is ultimately driven by people. Sri Lanka’s young population represents one of its most valuable resources, and the country’s educational institutions have an important role to play in shaping a sustainable future.

Universities, technical institutes and vocational training centres should place greater emphasis on sustainability related skills, green technologies, environmental management, and innovation. Future graduates will need the knowledge and capabilities required to succeed in industries that are increasingly influenced by sustainability considerations.

Encouraging research, entrepreneurship, and innovation in areas such as renewable energy, sustainable agriculture, waste management, and climate adaptation can help create new economic opportunities while addressing national challenges.

Investment in human capital is therefore not only an educational priority but also an economic necessity.

Sustainable Development as a growth strategy

A common misconception is that sustainable development requires sacrificing economic growth. In reality, evidence from many countries suggests the opposite. Sustainable industries have become major sources of innovation, investment, and employment creation.

Green technologies, clean energy projects, sustainable agriculture, eco-tourism, and environmentally responsible manufacturing have generated substantial economic benefits in both developed and developing economies. These sectors often attract investment, create skilled jobs, and support long-term economic resilience.

For Sri Lanka, sustainable development should not be viewed as a cost or constraint. It should be viewed as a strategic opportunity to build a more competitive and future-ready economy.

A recovery built for the future

Sri Lanka has made important progress in stabilising its economy, but recovery remains a work in progress. The challenge now is to ensure that economic gains achieved today can be sustained in the years ahead.

This requires moving beyond short-term financial stabilisation and embracing a broader vision of development. Sustainable development provides a framework for balancing economic growth, social wellbeing, and environmental protection while strengthening resilience against future shocks.

Economic growth and sustainability are no longer separate policy goals. They are increasingly interconnected elements of modern economic success. Countries that recognise this reality are likely to be better positioned to attract investment, compete internationally, create employment opportunities, and improve living standards.

As Sri Lanka charts its path forward, integrating sustainability into national development planning may prove to be one of the most important investments the country can make. A recovery built on sustainable foundations will not only protect the environment but also strengthen economic competitiveness, enhance resilience, and create lasting prosperity for future generations.

The world’s #1 Culture/Colour Brain Thinker, Arthur Carmazzi, is scheduled to make his first-ever regional and national visit for a workshop on 19 June 2026 at the Monarch Imperial Hotel from 8.30 a.m. onwards. The Daily FT, in partnership with Ads Store, will host the event, ‘Reset the Brain’, which focuses on team dynamics, leadership development, and organisational culture transformation through his exclusive expertise. The ‘Reset the Brain’ workshop will provide valuable insights for corporate leaders, business leaders, decision-makers, and department heads, enabling them to contribute more effectively to the growth and success of their organisations. To reserve your seat, call 0704760700.

Home Lands is set to make history with Sri Lanka’s largest-ever real estate launch, unveiling Central Park Boulevard Port City Colombo, The Indian Ocean’s Next Wonder. The launch, titled ‘The Grand Launch Weekend,’ will comprise a series of events taking place from tomorrow to 14 June 2026 at the Lumina Ballroom, Cinnamon Life at City of Dreams.

The Grand Launch Weekend will commence with ‘The Night of Emeralds’ tomorrow (12 June), marking the official launch of Central Park Boulevard Port City Colombo. The glamorous opening night is expected to bring together an exclusive gathering of distinguished business leaders, celebrities, social influencers, and prominent personalities from Sri Lanka and overseas, alongside celebrated Bollywood stars.

The weekend will continue with a carefully curated series of elevated experiences, including The Boulevard Brunch, The Boulevard High Tea, and The Boulevard Sundowner on Saturday, 13 June, followed by The Boulevard Evening on Sunday, 14 June. These exclusive experiences will provide visitors with the opportunity to explore the project in greater detail and engage with the Home Lands team in a sophisticated and immersive setting. Reflecting the scale, prestige, and significance of the development, the launch has been designed as more than an unveiling, but a landmark occasion befitting the most ambitious and anticipated real estate development in Sri Lanka.

This is the first time in Sri Lanka, a high-rise development project is inspired by an ultra-luxury international lifestyle brand, introducing a new benchmark in luxury living. Central Park Boulevard Port City Colombo features world-class amenities and premium value additions. Located in the Central Park District, this twin-tower development rises 37 levels and is poised to become one of Port City Colombo’s most iconic landmarks. Overlooking and seamlessly merging with nearly 40 acres of lush green parkland and a scenic waterway, while offering uninterrupted views of the Indian Ocean and spectacular sunsets, its sleek architecture blends seamlessly with the curated landscape of the Central Park, creating a tranquil oasis within a futuristic city. Central Park Boulevard Port City Colombo presents an exceptional collection of over 640 units, thoughtfully designed to suit a diverse range of modern lifestyles.

Beyond its lifestyle appeal, Central Park Boulevard offers exceptional investment potential. This iconic twin-tower development is expected to attract large inflows of foreign currency into the country, with the total project value estimated at over $ 300 million. The project investment of $ 150 million, by Home Lands, marks the largest real estate investment by a single Sri Lankan developer. Reflecting the strong confidence investors have already placed in the project, an exceptional 50% of units have already been sold ahead of the official launch, underscoring robust market demand and the development’s compelling investment proposition.

Ahead of the Grand Launch Weekend, Home Lands has appointed world-renowned cricket legend Mahela Jayawardene as Brand Ambassador, reflecting a shared legacy of trust, excellence, and international recognition.

Following the launch weekend, Home Lands will officially open the Central Park Boulevard Port City Colombo Sales Gallery on Monday, 15th June 2026. The Sales Gallery will provide an immersive introduction to the development’s vision, design, investment potential, and lifestyle offering, allowing visitors to experience firsthand the future of luxury living at Port City Colombo.

The Sri Lanka Working Journalists Association (SLWJA) has called for the immediate withdrawal of the draft Bill seeking to establish a regulatory authority for media professionals, arguing that the proposed framework is aimed at controlling rather than protecting the media.

In a statement issued recently, the association said journalists and media stakeholders had long discussed the need for an independent institution to safeguard media freedom, professional standards, welfare, ethics and education. However, it said the Government’s proposal unveiled last week revealed what it described as ‘an agenda rooted in media suppression.’

The SLWJA said any regulatory body governing the media should function independently of political influence and be dedicated to protecting journalists’ rights and promoting professional standards.

The association raised concerns over several provisions in the draft legislation, including powers granted to the Minister of Media to appoint an interim council, authority to make regulations, and disciplinary powers allowing investigations into alleged professional misconduct and the suspension of journalists.

According to the SLWJA, the Bill’s broad definition of ‘media professionals’ would bring writers, editors, announcers, publishers, owners, managers and cameramen under the authority’s jurisdiction.

The association warned that the proposed structure risked creating ‘a police to punish journalists’ rather than an institution designed to enhance professionalism and accountability within the industry.

It also criticised provisions requiring ministerial approval for foreign assistance received by the authority and mandating the body to advise the Minister on matters relating to media education, arguing that such measures undermine institutional independence.

The SLWJA further contended that the proposed legislation was being introduced against a backdrop of growing concerns over freedom of expression, citing the use of laws such as the Prevention of Terrorism Act (PTA) and the Official Safety Act (OSA) against artists, writers and journalists.

Calling for unity among Sinhala, Tamil and English media organisations, the association urged the Government to abandon the current proposal and instead pursue an independent regulatory framework free from State interference.

Sri Lanka’s coastal venue Smoke and Bitters has been named winner of the Michter’s Art of Hospitality Award in the run-up to Asia’s 50 Best Bars 2026.

Voted for by more than 300 members of The Asia’s 50 Best Bars Academy, this award recognises an establishment that has delivered exceptional hospitality over the past 18 months, setting a new benchmark for guest experience across the region.

Located on Pehembiya Beach in Dikwella, Smoke and Bitters has risen steadily since opening in January 2020. In 2025, it ranked No. 14 on Asia’s 50 Best Bars and No. 67 on the extended list of The World’s 50 Best Bars, becoming the first bar in Sri Lanka to feature on the global ranking. The venue has also been named The Best Bar in Sri Lanka on the Asia’s 50 Best Bars list for four consecutive years.

The brainchild of Co-Founders Don Ranasinghe and Lahiru Perera, Smoke and Bitters was created to showcase Sri Lanka’s culinary heritage and ingredients through a contemporary cocktail and dining experience. Their commitment to authenticity means all dishes are cooked using traditional wood fire – either smoked or chargrilled – as signified by ‘Smoke’ in the name, while ‘Bitters’ reflects bitters from indigenous Sri Lankan herbs and spices which dominate a cocktail menu inspired by myriad global cultures.

Asia’s 50 Best Bars Content and Creative Director Emma Sleight said: ‘Smoke and Bitters has played a pivotal role in redefining perceptions of Sri Lanka’s bar scene. Its commitment to local ingredients, open-fire cooking, and heartfelt hospitality creates an experience that feels both deeply personal and globally relevant. Congratulations to Don, Lahiru, and the entire team on this well-deserved recognition.’

Ranasinghe and Perera said: ‘It’s honestly pretty crazy to receive the Michter’s Art of Hospitality Award and see Sri Lankan hospitality being recognised on this level. We’ve always believed there’s something really special about the way people welcome and look after you on our island, so this means a huge amount not just to our team, but to the wider hospitality community in Sri Lanka as well. From day one, Smoke and Bitters has been about creating a warm, relaxed space genuinely rooted in our culture-so to be recognised for our hospitality is incredibly meaningful.’

Michter’s Executive Vice President Matt Magliocco said: ‘Congratulations to Don Ranasinghe, Lahiru Perera, and the entire Smoke and Bitters team on winning the Art of Hospitality Award. Smoke and Bitters has become recognised as a destination for thoughtful hospitality, and we’re delighted to celebrate this well-deserved achievement.’

The Michter’s Art of Hospitality Award is the first of two special accolades to be announced ahead of the 11th edition of Asia’s 50 Best Bars, sponsored by Perrier. The 2026 edition will culminate in a live awards ceremony at Wynn Palace, Macau, on 28 July, featuring a red-carpet celebration and the official unveiling of The Best Bar in Asia 2026.

Mastercard has announced significant leadership appointments aimed at strengthening South Asia operations by creating a more integrated model for Sri Lanka, Maldives, Bangladesh, Nepal, and Bhutan.

The growing synergies within these countries, especially with regard to the focus on tourism and cross-border trade and payments innovation, make this integration crucial in scaling operations and underscores the company’s commitment to unlocking shared growth opportunities across these markets.

Effective immediately, Sandun Hapugoda will assume an expanded leadership role as Group Country Manager overseeing Sri Lanka, Maldives, Bangladesh, Nepal, and Bhutan. In this capacity, he will lead Mastercard’s engagements across these markets, with a focus on deepening partnerships and accelerating digital transformation.

Hapugoda has successfully supported Mastercard’s business in Sri Lanka and Maldives, delivering strong market growth and strengthening the company’s position as a trusted partner to the ecosystem. He brings extensive experience across payments, digital banking, fintech, blockchain, and open banking. He has also contributed to national policy and innovation through roles on committees of the Central Bank of Sri Lanka, Technology Ministry, and National Science Foundation, among others. He currently serves as President of the American Chamber of Commerce in Sri Lanka.

Hapugoda will continue to report to Division President – South Asia Gautam Aggarwal.

Mahesha Amarasuriya has been promoted to Country Manager for Sri Lanka, reporting to Sandun Hapugoda. She has been with Mastercard for four years as Director for Sri Lanka, supporting the initiatives to expand digital payments and accelerate financial inclusion.

With over 23 years of experience in corporate banking, retail and private banking, cards, and electronic payments, she brings deep expertise and leadership to her new role.

She holds a BA (Hons) from the University of Colombo and an MBA from the Postgraduate Institute of Management, University of Sri Jayewardenepura, where she graduated as valedictorian.

She has also served in leadership roles across professional bodies including the Chartered Institute of Management Accountants (CIMA) Global Council and has been recognised with multiple industry accolades.

‘South Asia represents a dynamic and interconnected growth opportunity for Mastercard. By bringing these five markets under an integrated leadership model, we are better positioned to unlock synergies across tourism, trade, and digital payments.’ said Aggarwal. ‘Sandun and Mahesha bring deep market insight and a strong track record of execution. Their leadership will be instrumental in strengthening partnerships, accelerating digitalisation, and reinforcing Mastercard’s role as a trusted partner to the ecosystem.’

Team Akura from SLIIT wins the OneEarth AI Tool Building Challenge

Team Akura, a group of four students from SLIIT’s Faculty of Computing- emerged champions at the 2026 AI Tool Building Challenge on OneEarth. This virtual competition was organised by the School of Computing of Goldsmith’s University, London. Seeing that their fourth-year project fits the brief which calls for using AI-driven solutions to address real-world challenges, their mentor Dr. Dinuka Wijendra guided the team and supervised their application to the competition.

The team consisting of Mihiran Nanayakkara, Dinithi Piyathilaka, Dhuwindhu Rathnayake and Rahul Nanayakkara designed a mobile, multi-modal learning platform for children aged 3-6 to support learning Sinhala. Although the world is divided about allowing screen-time for young children, Team Akura’s approach is to make this exposure productive.

Initial research, according to Team Akura, showed that most digital learning aids and tools focused on rote learning leaving the process of internalising knowledge unaddressed. In response they built an adaptive tool which combines handwriting guidance, pronunciation assessment, gesture-based numeracy and emotion-aware learning to deliver personalised real-time education support.

Competing under the theme of AI for Inclusive and Quality Education, they faced two rounds of presentations-defending their work to panels of seasoned international experts. Admittedly an unnerving experience for the team, they faced judges ranging from experts in cloud systems, cyber security, Generative AI, and data security. Confidence levels improved, the team reports, after presenting their work in the first round. Seeing their ideas resonate with industry professionals from all over the world they say was deeply rewarding and inspiring.

When Team Akura was pronounced as the winners earlier this year, most team members were preparing for their final exams at SLIIT. Not only did this win encourage them to finish their degrees strongly, but it also came with further mentorship from a few judges from leading tech and education organisations.

The Ceylon Motor Traders’ Association (CMTA), affiliated with The Ceylon Chamber of Commerce, yesterday issued an urgent appeal to the Government to abolish the 15% depreciation currently granted on used vehicle imports, warning that the concession is causing massive revenue leakages at a time when the country can least afford them.

The Association estimates that the existing depreciation mechanism resulted in approximately Rs. 40 billion in lost Government revenue in 2025 alone.

If corrective action is not taken immediately, a similar level of revenue leakage could occur in 2026, further impacting the Government’s fiscal position and depriving the country of much-needed funds for national development and public services.

It noted that loopholes within the existing system have created opportunities for misuse, resulting not only in unfair advantages for certain importers but also in substantial losses to Government revenue. Addressing these abuses, alongside the removal of the 15% depreciation concession, is essential to ensuring greater transparency, strengthening regulatory oversight, and protecting the integrity of Sri Lanka’s vehicle import sector.

While no official announcement has yet been made regarding the removal of the 15% depreciation, the CMTA has consistently highlighted the issue through multiple Budget proposals submitted via The Ceylon Chamber of Commerce. The Association has repeatedly maintained that there is no viable justification for the continued application of this concession on used vehicle imports.

Currently, used vehicles receive a 15% depreciation on their Cost, Insurance and Freight (CIF) value for duty calculation purposes. However, the vast majority of vehicles entering the country through the used vehicle market are virtually zero-mileage units, with CIF values that are often comparable to those of brand-new vehicles. In such circumstances, the CMTA argues that granting a blanket 15% depreciation creates an unfair and unjustifiable tax advantage while significantly reducing Government revenue collections.

The Association acknowledged that if the objective through this concession is making vehicles more affordable for consumers, then the CMTA stresses that affordability cannot be achieved through arbitrary concessions that create market distortions and substantial losses to the Treasury. If the intention is to reduce vehicle prices, similar policy considerations could be extended to brand-new vehicles rather than selectively benefitting one segment of the market.

Consumers who purchase brand-new vehicles benefit from manufacturer warranties, which help mitigate maintenance and repair costs during the warranty period. As a result, vehicle owners are less likely to incur additional expenses associated with importing replacement parts, providing greater long-term value, reliability, and peace of mind.

The CMTA further noted that as far back as 2013, a structured depreciation framework was implemented based on the age of a vehicle, rather than a flat-rate concession. Under this proposal, depreciation would be calculated according to a defined scale and capped at a maximum of 10%, ensuring greater fairness, transparency, and alignment with the actual value of the vehicle.

The Association stated that the continued application of a blanket 15% depreciation is resulting in significant and unnecessary revenue leakages for the Government. At a time when every rupee of revenue is critical to the country’s economic progress, this issue requires immediate attention and decisive action.

The CMTA therefore strongly urged the relevant authorities to take swift action to abolish the current 15% depreciation concession and close this avenue of revenue leakage without delay. The Association emphasised that every month of inaction increases the risk of further losses to the State and undermines efforts to strengthen public finances.

Should the Government determine that some form of concession should continue to be extended to the used vehicle market, the CMTA maintains that it must be implemented through a structured and transparent framework based on vehicle age and capped at a reasonable level. Such an approach would ensure fairness while safeguarding Government revenue and maintaining a level playing field across the automotive industry.