Vehicle policy: all vehicles to be eco-friendly by 2040

Minister of Finance Mangala Samaraweera in his Budget speech today (9), stated that all vehicles in Sri Lanka will have to be eco-friendly by 2040 as part of a ‘Green initiative’ adopted by the government to promote eco-friendly vehicle usage within the country.   

He further stated that all state owned vehicles will be hybrid vehicles by 2025 as part of the Green initiative.

Relief will be provided to all consumers of electric vehicles as the import tax for electric vehicles will be reduced by Rs.1 million. It was also decided to impose a super luxury tax of Rs.2.5 million will be imposed on all super luxury vehicles. 

The Minister stated that the import tax on three-wheelers will be increased by Rs.50,000 and that any youths who already own a three-wheeler will be provided with an opportunity to sell such vehicles to countries like Bangladesh. 

It was also stated that the import of vehicles without airbags will be banned as a result of rising safety concerns. 

Keeping in line with the ‘Green initiative’, the SLTB will also go green as Rs.500 million will be allocated to introduce eco-friendly buses to the SLTB.  

Minister Samaraweera further stated that a carbon tax will be introduced as follows,

Motorcycles - Rs.17 cents per day
Cars - Rs.1.78 per day
Buses - Rs.2.74 per day