Deputy Minister of Energy Arkam Ilyas told Parliament today that the government has launched a major project to develop infrastructure for electric vehicles by introducing charging points at key public locations.

The initiative, in collaboration with the United Nations Development Programme (UNDP), comes as Sri Lanka saw a surge of electric vehicles entering the country in 2025, with plans to add 5% of these to the government fleet. 

Pointing out that it was pointless importing such vehicles if they only charge at night, the Deputy Minister underscored the need for daytime charging facilities. 

Charging points are to be established at fuel stations, supermarkets, car parks, office spaces, and hospitals, places where vehicles are typically parked during the day. 

Ilyas said the project aims to bridge gaps in EV charging infrastructure and shift between 100–200 megawatts of peak demand to daytime hours, reducing reliance on fossil fuels. (Newswire)

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Deputy Minister of Economic Development, Anil Jayantha Fernando, says a new category for Customs duties has been proposed for electric vehicles that use fuel-powered motors. 

Anil Jayantha Fernando disclosed information in this regard while tabling the relevant proposal in Parliament for approval. 

Addressing Parliament yesterday, the Deputy Minister said that currently, Sri Lanka allows the import of Diesel and Petrol vehicles, Hybrid-Diesel and Hybrid-Petrol vehicles, and electric vehicles. 

He said, however, currently a new type of vehicle, electric vehicles that use fuel-powered motors, have also begun being imported in Sri Lanka. 

“This new type of vehicle does not fall under the existing Customs duties. A new HS code has to be created when importing these vehicles to ensure the proper imposition of tax duties. Investigations have found the need to introduce new regulations. This is because, under the existing regulations, higher taxes were being paid for this type of electric vehicle,” he explained. 

Deputy Minister Anil Jayantha Fernando said, as such, a Cabinet-approved committee was appointed for this purpose, and a new category was introduced for the new type of electric vehicle that uses fuel-powered motors.

“This new type of vehicle has been categorised between electric and hybrid vehicles. They are not purely electric or purely hybrid. So, the Cabinet committee decided that taxes must be imposed, taking into consideration it as a vehicle between electric and hybrid,” he said.

The Deputy Minister went on to note that due to the said vehicle not having a category before, higher taxes were being paid, pointing out that it has been proposed to impose lower taxes for low-cost vehicles and higher taxes for luxury vehicles. 

Anil Jayantha Fernando further said that it has also been proposed that a luxury tax must be included for these vehicles.

“The luxury tax at present is 60% if the CIF value is above Rs. 06 million for an electric vehicle. It has been proposed that the same be imposed for the new electric vehicles that use fuel-powered motors,” he said. 

The Deputy Minister of Economic Development emphasized that the new system is designed to reduce tax burdens for lower-cost vehicles, impose higher taxes on luxury models, and ensure fair and practical categorization for modern vehicle types. (Newswire)

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Shares of BYD, the largest Chinese electric vehicle brand, tumbled 8.6% on Monday following news that the company offered steep discounts in some models, sparking concerns about a fresh price war in China’s EV markets.

The decline continued in Tuesday’s Asian session, with BYD shares falling a further 4% in Hong Kong as of 5am CEST. Despite the drop, the stock remains up more than 50% year-to-date on the Hong Kong Stock Exchange. In contrast, global competitor Tesla saw little change in its share price on Monday, but remains down 13% year-to-date in 2025.

The aggressive pricing strategy has raised concerns over slowing EV demand amid persistent weakness in the Chinese economy and heightened US-China trade tensions. Other major Chinese EV makers also saw declines on Monday, with shares of Geely, Great Wall Motor, and Xpeng falling between 4% and 9% due to fears that deeper discounts could squeeze sector profit margins.

A sweeping price cut

BYD announced broad price reductions across 22 electric and plug-in hybrid models, effective until 30 June, according to a post on the company’s official Weibo account. The discounts, which range from 10% to 30%, apply to vehicles from its Ocean and Dynasty series. The most significant cut was for the Seal 07 DM-i model, with a discount of 53,000 yuan (€6,460), or 34%.

Analysts expect rival Chinese carmakers to follow BYD’s lead as domestic competition intensifies. The pricing strategy also appears aimed at reducing the excess inventory of older models. In the first four months of 2025, BYD’s dealer inventory rose by approximately 150,000 units, equal to around half a month’s worth of retail sales, according to CnEVPost.

Citi analysts estimate that the price reductions could drive a 30% to 40% weekly surge in sales. This may potentially offset margin pressure.

BYD growth remains robust, surpassing Tesla in European sales

Despite investor concerns, BYD remains on a strong growth trajectory and continues to challenge Tesla in global markets. In April, BYD reported 380,089 sales of new energy vehicles (NEVs), a 21% year-on-year increase. Overseas sales also set a new record for the fifth consecutive month.

In a key milestone, BYD outsold Tesla in Europe for the first time last month, with 7,231 new battery-electric vehicles registered, a 169% year-on-year jump. By comparison, Tesla’s sales have fallen across Europe in 2025, a trend attributed in part to growing anti-Tesla sentiment linked to CEO Elon Musk’s political involvement.

During the first quarter, BYD sold nearly 1 million vehicles, placing it firmly on track to achieve its 2025 target of 5.5 million annual vehicle sales. The company reported a net income of 9.15 billion yuan (€1.11 billion), with a gross profit margin of 20%. This compares with Tesla’s $409 million (€359 million) and a 16% margin over the same period.

BYD is also investing in advanced driver-assistance systems. The company’s adoption of DeepSeek’s R1 AI model is expected to rival Tesla’s Full Self-Driving (FSD) technology, potentially at a significantly lower cost.

In addition, BYD is China’s second-largest battery manufacturer after CATL, giving it a competitive edge in cost control and vertical integration.

BYD is likely to remain less impacted by US tariffs as it does not sell passenger vehicles to the US. Instead, it is focusing on Southeast Asia and South America for international growth. The company is also establishing a manufacturing plant in Hungary, which is expected to boost European sales. (Euro News)

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A new initiative to offer electric vehicle charging stations at multiple Cargills Retail locations was launched in Colombo on Thursday (Mar 21).

According to Minister of Power and Energy Kanchana Wijesekera, the ‘Charge while you shop’ initiative was launched in support of Sri Lanka’s transition to electric mobility.

The minister further said that the project is implemented by Cargills in collaboration with the United States Agency for International Development (USAID).

The initiative was officially launched at the Cargils outlet on Baudhaloka Mawatha together by Minister Kanchana Wijesekera and US Ambassador to Sri Lanka Julie Chung. (NewsWire)

In support of Sri Lanka's transition to electric mobility, Cargills in collaboration with the United States Agency for International Development (USAID) launched 'Charge while you shop' initiative to offer electric vehicle charging stations at multiple Cargills Retail locations… pic.twitter.com/qoaVYj8yri

— Kanchana Wijesekera (@kanchana_wij) March 21, 2024

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Honda and Nissan have signed a memorandum of understanding for a feasibility study to explore the potential of jointly developed electric vehicles. If the two automakers reach an agreement, the partnership could also include working together on software.

The collaboration is still in its infancy but if Nissan and Honda do ink a deal, the plan is to channel efforts into “automotive software platforms, core components related to EVs, and complementary products.” The software part could pertain to safety and/or autonomous driving technologies since the press release published by both companies talks about “zero traffic-accident fatalities.” It also includes a shared goal of reaching carbon neutrality.

According to a report published by Nikkei Asia a few days ago, Nissan and Honda want to develop a new platform exclusively intended for electric vehicles. The collaboration could extend to engineering EVs together. In addition, the Japanese automakers could pool money to buy a common EV powertrain and batteries.

A tie-up would not only speed up development but also bring R&D costs down. Honda is no longer working with General Motors to co-develop affordable electric crossovers, so the fact it’s seeking a new partner is no surprise. The collaboration with GM is likely to be limited to the Honda Prologue and Acura ZDX on the Ultium platform.

Nissan has a partner in Renault when it comes to EVs and other types of vehicles. The next-generation Micra will be heavily based on the reborn Renault 5. It’s going to use about 80 per cent of the same parts and will enter production in 2026 at Renault’s Douai factory in northern France.

With Chinese competition intensifying while the Volkswagen Group and Stellantis are doubling down on EVs, Nissan and Honda don’t want to trail behind. However, since the two have just signed an MoU, it means a jointly developed platform/car is unlikely to come out in the next few years, provided a final deal is agreed upon. (Motor1)

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Cabinet approval has been granted to extend the validity period of the scheme for granting licences to Sri Lankans working abroad to import fully electric vehicles.

According to the government, Cabinet approval was given in August 2022 for the implementation of a scheme for granting licences to Sri Lankans working abroad to import fully electric vehicles on the basis of formal bank transfer of foreign remittances at the licensed bank in Sri Lanka. 

It was also decided in the Cabinet meeting held in January 2024 to extend the validity period of the scheme till June 30, 2024. 

Accordingly, the Cabinet approved the proposal presented by the President, in his capacity as the Minister of Finance, to submit the Import and Export Control Regulations No. 2 of 2024 issued under the Import and Export Control Act No. 1 of 1969 in this regard to parliament for approval. (NewsWire) 

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The Cabinet of Ministers has granted approval for the importing of new rechargeable electric vehicles subject to exemption of Customs tariff to an amount not exceeding the value of US$ 30,000 with the aim of attracting investments to Sri Lanka. 

The government states that most Asian countries have followed more convenient access by imposing zero (0%) custom tariffs for assembling and manufacturing electric vehicles and plug- in hybrid vehicles. 

It pointed out that through this attractive encouragement, investors and manufacturers can be attracted as well and it can be directed towards future export probabilities which paves the way to act according to the global criteria on environmental security.

Accordingly, the Cabinet approved the proposal presented in this regard by the President in his capacity as the Minister of Finance.

Thereby, Cabinet nod has been received to impose a 0% customs tariff on the CIF value when importing electric vehicles, electric two – wheelers with a power grade up to 500 kW and modern partially assembled Semi – Knocked – Down / SKD sets with an engine capacity up to 3000 CC for assembling plug – in hybrid electric vehicles for investors that engage them for electric vehicles and plug – in hybrid electric vehicles for a minimum investment of United States Dollars 50 million by companies already agreed with the Sri Lanka Board of Investment (BOI) or new companies entering into agreements, aiming to encourage the manufacturing of electric vehicles locally. 

Meanwhile, the proposal also includes the exemption of insurance and shipping charges for projects that accomplished the receivable criteria in order to attract investments.

According to the government, these investments are to be attracted under the programmes “Retaining and extending investors for re – investment of existing BOI approved companies” and “The 100 service companies programme that are BOI’s information technology / and companies empowered by information technology”.

1. Criteria for the programme for retaining and extending investors for re – investment of existing BOI approved companies: 

• The relevant companies should have been registered under section 17 of Sri Lanka Investment Board Act and have been in operation within a period of less than 5 years 
• Proposed minimum investment for the extension of the project to be United States Dollars 3 million 
• Creating at least 50 employments to the minimum under the programme of extending the proposed enterprise. 

2. Criteria for the 100 service companies programme that are BOI’s information technology / and companies empowered by information technology: 

• An enterprise should generate 50 new local employment opportunities and out of which 15 employees should have been technically qualified. 
• The minimum investment to be United States Dollars 250,000. (NewsWire)

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The government has decided to extend the time period used for the calculation of foreign remittances on the basis that Sri Lankan migrant workers are issued permits to import electric vehicles.

As per the latest Cabinet decision, the time period for the calculation of foreign remittances to permit Sri Lankan migrant workers to import electric vehicles has been extended to September 15, 2023.

During an earlier Cabinet meeting, approval was given to allow Sri Lankan migrant workers to obtain permits to import electric vehicles based on their foreign remittances sent via legal channels.

As per the Cabinet decision, the foreign remittances contribution was to be calculated from May 1, 2022, to December 31, 2022.

However, it has been identified that the said period was not sufficient for Sri Lankan migrant workers to import electric vehicles of their choice.

Thereby, a proposal was made by Minister of Foreign Employment Manusha Nanayakkara to extend the foreign remittances calculation period from May 1, 2022, to September 15, 2023, which received Cabinet approval. (NewsWire)

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