Sri Lanka Customs will release almost 1,000 BYD electric vehicles after a Court of Appeal settlement on Thursday, ending a months-long dispute over alleged misrepresentation of engine power in import declarations.
The importer, John Keells CG Auto, had petitioned the court after Customs detained 991 cars on July 28, accusing the company of declaring a lower motor capacity of 100kW instead of the actual 150kW. The difference carries a tariff gap of four million Sri Lankan rupees per vehicle, amounting to an estimated Rs. 3 billion in total.
Under the settlement, Customs agreed to release the vehicles in exchange for a bank guarantee covering the disputed amount, while six units will remain in detention for capacity testing.
John Keells has denied any intent to mislead, citing test reports from BYD in China and certification by an independent body. The case drew political attention last week when Opposition MP Mujibur Rahman alleged a Rs. 4.5 million tax discrepancy between new and used BYD ATTO 3 models, questioning whether the importer benefited from political or business ties.
BYD, which entered the Sri Lankan market after the government lifted a five-year import ban in February, quickly captured nearly 90% of the electric vehicle segment and over 10% of total car sales by May.
