Sri Lanka Customs has detained nearly 1,000 BYD electric vehicles amid suspicions of motor capacity underreporting. With tensions rising and delays blamed on lack of cooperation, officials warn the standoff could spark a China-Sri Lanka diplomatic crisis similar to the fertilizer ship incident.
Sri Lanka Customs has launched an investigation into a batch of BYD electric vehicles imported into the country, raising serious questions about the declared engine capacity. Authorities suspect the motor capacity may have been understated to benefit from lower tax rates.
Customs Media Spokesperson and Senior Director Seevali Arukgoda confirmed that the investigation began following complaints from industry stakeholders and information provided by Deputy Finance Minister Chathura Senaratne. Although the vehicles have been declared to have 100 kilowatt (kW) motors, Customs suspects they may actually be fitted with 150 kW motors, a difference that would significantly impact the tax due on each vehicle.
The delay in the inspection has been attributed to a lack of cooperation from BYD’s official local representative, John Keells CG Auto (Pvt) Ltd. “We requested to inspect the motor, but they said it was a process, so the delay was on their side,” Arukgoda said. Authorities are also probing whether the vehicles’ software may have been tampered with to misreport motor output.
To confirm the true motor specifications, technical assistance is expected from the University of Moratuwa. The matter was presented before the Committee on Public Finance (COPF), where Chairman MP Harsha de Silva emphasized that all investigations must align with international standards, especially since the matter involves a Chinese manufacturer.
Nearly 1,000 BYD electric cars remain detained at Colombo Port. Although the importer maintains that the vehicles comply with all standards and contain 100 kW motors, Customs has yet to issue a final ruling.
MP Harsha de Silva further warned that if not resolved swiftly, this could escalate into a full-blown diplomatic dispute between China and Sri Lanka. He referenced Sri Lanka’s earlier fertilizer crisis with China, where discrepancies in lab results between Singapore and Sri Lanka led to international tensions.
“This must not become another diplomatic disaster,” de Silva cautioned, urging a quick and internationally compliant resolution to avoid damaging relations with one of Sri Lanka’s key partners.
