Over 2,000 imported vehicles remain stranded at Colombo and Hambantota Ports for more than two months, causing a shipping gridlock and massive demurrage costs. Importers blame government inaction and policy confusion over Japanese vehicles imported via third-party LCs.
More than 2,000 newly imported vehicles are stranded at Sri Lanka’s Colombo and Hambantota ports, with some stuck for over two months, creating severe congestion and logistical bottlenecks for incoming shipments, according to informed sources.
At Hambantota Port, a vessel carrying a new shipment of vehicles was reportedly forced to remain docked for several days due to a lack of available space caused by the backlog of unclaimed cars.
Customs officials revealed that over 1,000 of these vehicles are being held due to unresolved issues surrounding the importation of Japanese vehicles using bank Letters of Credit (LCs) opened via third-party countries. The dispute, which began on May 27, remains unsolved, prompting several vehicle importers to initiate legal proceedings against the government for failing to clarify its stance.
Sources also confirmed that demurrage charges have reached crippling levels. For some vehicles, fees have climbed as high as Rs. 500,000 each. The legal case surrounding this issue is scheduled to be taken up in court today.
Vehicle importers are warning that unless the dispute is resolved swiftly, the accumulated demurrage fees will be passed on to consumers, potentially causing a sharp increase in local vehicle prices once the stranded imports are cleared.
