News
Revenue soars after Sri Lanka lifts vehicle import ban
View(s):Motor Traffic Department revenue and new vehicle registrations saw a dramatic increase between 2024 and 2025, amid policy changes governing vehicle imports.
According to statistics released by the Department of Motor Traffic, revenue reached Rs 64,740mn, an increase of 111% compared to Rs 17,529mn in 2024, and exceeded both the original and revised estimates initially forecast for 2025. Income was highest in September, amounting to Rs 13,104mn. Key revenue streams included Luxury Motor Vehicle Tax, tax on the sale of motor vehicles, carbon tax, fees under motor traffic and other categories, and registration fees on motor vehicles. Luxury Motor Vehicle Tax and registration fees on motor vehicles increased by 116.65% and 160.09% respectively, accounting for the largest shares of the increased revenue. Motor traffic fees and tax on the sale of vehicles followed, recording increases of 100.23% and 96.44% respectively.
Sri Lanka’s vehicle import ban in 2020, was lifted from February 1, 2025, although phased implementation allowed buses and special vehicles to be imported earlier, in late 2024. Following this, new vehicle registrations rose from 74,410 in 2024 to 312,317 as of November 2025. September recorded the highest number of new registrations at 48,957, with October following at 45,006 new registrations. January, before the lifting of the ban, recorded the lowest number of registrations at 11,464.
The best way to say that you found the home of your dreams is by finding it on Hitad.lk. We have listings for apartments for sale or rent in Sri Lanka, no matter what locale you're looking for! Whether you live in Colombo, Galle, Kandy, Matara, Jaffna and more - we've got them all!