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. 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. Following this, new vehicle registrations rose from 74,410 in 2024 to 312,317 as of November 2025.

Source: Sunday Times January 11, 2026 02:45 UTC