The Inland Revenue Department (IRD) has clarified that individuals selling their residential property or personal vehicles can now do so without paying tax, provided certain conditions are met.

An official from the IRD said that for residential property, sellers are exempt if they have held legal ownership for at least three years prior to the sale and have resided at the location for over two years during that period. If these criteria are satisfied, the full amount from the sale is tax‑free. 

He further said that transfers of property to family members or children are also exempt, with tax applying only when sold to third parties.

On vehicles, the IRD official said the previous taxation system has been removed under the amended act. 

He explained that from April 1, 2024, the sale of personal vehicles is entirely tax‑free, regardless of the vehicle’s age, condition, or model. 

The exemption applies solely to personal vehicles, with the entire profit from the sale free of tax, the IRD official added. (Newswire)

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The Department of Motor Traffic (DMT) has announced that it is currently gathering information on vehicles destroyed due to the recent disaster situation.

Commissioner General of the DMT, Kamal Amarasinghe, told the media today that from December 15 onwards, a special mobile service will be conducted at the district level to address this matter.

Based on the collected information, further action will be taken, and vehicles affected by the disaster will be inspected by the department to determine whether they are suitable for use or not, he added.

He further noted that, in addition to vehicles, some individuals’ documents have also been destroyed due to the disaster, and the department is collecting such information as well to proceed with necessary measures.

Accordingly, vehicle owners are advised to inform the Grama Niladhari of their division, who will then notify the Officer‑in‑Charge of the police station and file a police complaint. The Commissioner General emphasized that obtaining accurate reports from various agencies is essential for managing this situation.

Given the current circumstances, the DMT has received a large number of phone calls to its divisions, and therefore a special unit has been established to handle these inquiries, he said.

He further explained that information can also be provided via WhatsApp through the number 0707188866, and advised vehicle owners to preserve any available evidence of their vehicles or documents, as such evidence will be useful for future proceedings. (Newswire)

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The Sri Lanka Army has refurbished 76 previously unserviceable vehicles and reintroduced them to active service under the instructions of Army Commander Lieutenant General Lasantha Rodrigo.

The restored fleet, which includes trucks, buses, water bowsers, Uni-Buffel vehicles, cabs, ambulances, vans, and fuel bowsers, was repaired by the Army’s Corps of Electrical and Mechanical Engineers.

The initiative, carried out in line with the Clean Sri Lanka programme, allows the Army to save a significant amount of foreign exchange by avoiding new imports.

According to the Army, the redeployment of these vehicles will also save around Rs. 10 million each month that would otherwise be spent on hiring vehicles from outside sources. The savings will now be redirected toward Army development and national progress.

The refurbishment marks the first phase of an ongoing project aimed at maximizing resource utilization and improving operational efficiency within the Sri Lanka Army. (Newswire)

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The Central Bank has issued a new directive under the Central Bank Act, revising loan-to-value (LTV) ratios for vehicle financing, effective from July 17, 2025.

The changes are intended to enhance macroprudential policy making, mitigate systemic risks, and harmonize existing credit limits, the Central Bank said in a statement.

Under the new directive, the previously higher 90 percent LTV ceiling for electric vehicles has been removed.

The LTV ratio for cars, sport utility vehicles (SUVs), and vans has been increased to 60 percent from the previous 50 percent.

For three-wheelers, the LTV ratio has doubled, rising from 25 percent to 50 percent.

Vehicles used for taxi services or similar commercial purposes are now capped at 70 percent.

Meanwhile, the LTV ratio for commercial vehicles has been reduced to 80 percent from the earlier 90 percent.

Additionally, cars that have been registered and in use within Sri Lanka for more than one year are now subject to a 70 percent LTV cap. (Newswire)

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The Ministry of Energy has announced a public tender for the sale of 14 luxury and decommissioned vehicles currently owned by the ministry. The list includes high-end SUVs such as Toyota Land Cruisers, BMW X5, Mercedes-Benz E200 CGI, and several other utility vehicles.

According to the tender notice, bids are being accepted for vehicles including a BMW X530D (2016), multiple Toyota Land Cruiser Prado and Land Cruiser models, a Nissan Patrol Y62, and a Toyota Hilux Double Cab. Vehicles range in engine capacity from 1,295 CC to 5,552 CC and were manufactured between 2000 and 2016.

Interested bidders must submit a separate application and bid for each vehicle. Application forms can be obtained by paying a non-refundable fee of Rs. 5,000 per vehicle at the Ministry’s Accounts Division on the 3rd Floor, No. 437, Galle Road, Colombo 03, until July 15, 2025, during working hours. Vehicle inspections will be permitted during this period, upon receipt of tender applications.

Each bid must be accompanied by a refundable security deposit of Rs. 50,000 per vehicle.

The final sealed bids, clearly marked as “Invitation for Bids for the Sale of Vehicles owned by the Ministry of Energy” along with the respective Lot and Vehicle Numbers, must be placed in the designated tender box at the Transport Division by 10.00 a.m. on July 16, 2025.

For further details, the Senior Assistant Secretary (Admin) can be contacted via 0112-574740 and the Transport Officer through 0112-574941. (Newswire)

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Cabinet Spokesman Minister Nalinda Jayathissa said that providing vehicles to Members of Parliament is not a priority under the current economic conditions.

Addressing journalists at the weekly Cabinet media briefing, Jayathissa reiterated, “The government will not provide vehicles to MPs.”

Jayathissa said that while proposals to assist MPs exist, they are expected to make their own arrangements, as should opposition MPs.

When questioned about Minister Vijitha Herath’s earlier comments suggesting vehicle imports, Jayathissa clarified that while the government’s policy allows maintaining a vehicle fleet for MPs and reclaiming them after five years, no permits or vehicle imports will be issued at this time due to economic constraints.

He added that the government is currently unable to maintain a general pool of government vehicles for various reasons. (Newswire)

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Sri Lanka’s Ministry of Finance has permitted certain heavy vehicles that were imported during the period of import restrictions and seized by the Customs Department to be cleared, State Minister of Finance Ranjith Siyambalapitiya stated. 

State Minister Siyambalapitiya stated that buses utilized for public transportation, and lorries and trucks used for special purposes and goods transportation are among the vehicles permitted for clearance.

The State Minister of Finance further stated that the seized vehicles can be cleared with a payment of a 30% surcharge on the cost, insurance and freight (CIF) Value.

The vehicles for which customs declarations have not been issued can be cleared after reporting to the Controller General of Imports and Exports and paying the surcharge on CIF value, he said. 

The importation of vehicles, including buses utilized for public transportation, and lorries and trucks used for special purposes and goods transportation was permitted from midnight yesterday (Aug 14), with the relevant Gazette being published today. 

State Minister Ranjith Siyambalapitiya stated that lorries and trucks used for the removal of debris and fire engines are among the vehicles permitted to be imported.

He added that buses have been allowed to be imported to strengthen the public transportation system and to develop the tourism sector. (NewsWire)

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A Gazette notification has been issued relaxing restrictions on importing certain vehicles utilized for public transportation.

As per the Gazette, import restrictions have been relaxed for buses, lorries, tankers/ bowsers, and trucks. 

The Gazette notification has been issued by the Ministry of Finance. 

Earlier, commenting on the easing of import restrictions on certain vehicles, State Minister of Finance Ranjith Siyambalapitiya said the imports of other vehicles will be further delayed.

The State Minister of Finance said that financial analysts say the imports of other vehicles will be further delayed considering the current foreign exchange reserves.

He added that the financial analysts also emphasized that the value of the dollar can rise again through the increase in vehicle imports.

The government imposed a ban on several items as a part of its prolonged stringent import restrictions from March 2020 due to the coronavirus pandemic.

The ban on imports continued due to the economic crisis until as recently as November last year after which the government took measures to relax import restrictions on several items in batches. (NewsWire)

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