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CMTA calls for urgent recall of vehicle valuation and import processes

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The Ceylon Motor Traders Association (CMTA) has highlighted the fact that Sri Lanka’s vehicle import framework requires urgent recalibration to ensure fairness, transparency, and the protection of state revenue. The CMTA states that one of the most critical issues that must be addressed is the automatic 15 per cent reduction applied to the CIF value of used vehicle imports when calculating import duties. The CMTA maintains that duty calculations should be applied uniformly across all importers, whether the vehicle is brought in through an authorised agent as brand new or through a dealer as a used import.

For example, if an authorised agent imports a 2026 zero-mileage vehicle of a particular brand at a CIF value of USD 50,000, the full value is used for duty assessment. However, if a dealer imports the exact same 2026 model, also zero mileage and identical in specification, but registered and subsequently de-registered prior to shipment, the CIF value for duty purposes is reduced by 15% to USD 42,500. This concession is granted solely because the vehicle is technically classified as “used” due to prior registration, despite there being no practical difference in mileage, condition, or specification between the two vehicles.

The CMTA believes this practice creates a structural imbalance in the market and results in a significant erosion of import duty revenue to the State. When two identical zero-mileage vehicles are assessed at different CIF values purely on the basis of a procedural registration classification, it distorts competition, disadvantages compliant authorised agents, and undermines equitable tax collection. The Association therefore calls for a uniform valuation approach that reflects the true transacted value of the vehicle, regardless of its registration status prior to export.

Compounding this issue is the widespread application of a 15% depreciation adjustment, which further distorts declared values. When combined with under-declared transaction prices and manipulated valuations, duty is calculated on figures that are significantly lower than actual market value. These reduced values are then reflected across various online platforms and price-tracking websites, creating a distorted reference market that reinforces undervaluation and normalises non-compliant pricing behaviour.

One of the most pressing issues confronting the State is the growing misuse of VAT-free trade-ins which certain car sales are supposed to be practicing within the used vehicle business. These transactions, often structured as vehicle-for-vehicle or vehicle-for-asset exchanges in selling an unregistered vehicle and bypass standard VAT mechanisms and obscure the true transacted value of imports. Such practices often allow vehicles to enter the market with lower invoice values, directly impacting the calculation of import duties and other applicable taxes.

The absence of structured, enforceable processes to accurately define and verify transacted value has created an environment where valuation practices vary widely and lack accountability. Evaluations are frequently conducted at lower price points that do not reflect genuine purchase consideration, enabling systemic revenue leakage for the Government. While mechanisms exist in principle to address these discrepancies, their inconsistent application has rendered them ineffective.

Vehicle imports through CMTA members which operate within clearly defined and auditable frameworks, demonstrate that transparent valuation and predictable tax collection are both achievable and sustainable. These channels provide the State with accurate invoicing, traceable foreign currency outflows, and reliable duty and VAT collection, while limiting the scope for malpractices.

The CMTA believes that consumer safety cannot exist in isolation. The association believes that authorities have a responsibility to ensure that all businesses within the automotive industry operate ethically and within the law. When certain segments of the market are permitted to circumvent regulation, consumer safety is compromised and businesses committed to lawful operations and sustained customer support are placed at an unfair disadvantage.

Therefore, the association urges the relevant authorities to rigorously enforce existing laws and regulations to mitigate malpractices and ensure a level playing field for all participants in the industry and ensure proper collection of tax revenue for the nation. Fair enforcement will not restrict consumer choice; it will enhance it by promoting transparency, safety, and accountability across the market.(CMTA).



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Advocata Institute highlights regulatory barrier limiting women’s overtime earnings

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Advocata Institute says that, a regulatory barrier prevents Sri Lankan women achieving pay parity with their male counterparts despite recent legislative amendments that have opened doors for women to work night shifts.

Despite the 2024 and 2026 liberalizations of the Shop and Office Employees Act (SOEA), which allowed women over 18 to work night shifts in IT, BPO, and hospitality sectors, women remain legally barred from maximizing their income due to rigid overtime restrictions.

Under current regulations, women cannot be employed under the Shop and Office Act for more than nine hours per day, a limit that strictly includes overtime. While Regulation 6 of the Act permits up to twelve hours of overtime per week, this daily “hard cap” creates a practical barrier that prevents women from accessing the full overtime entitlement available to male workers. This creates a regulatory paradox: while the law now permits women to work at night, it simultaneously restricts them from working the hours necessary to take home the same pay as a man performing the same role.

The urgency for reform is underscored by the Sri Lanka Labour Force Survey for the third quarter of 2025, which reveals a significant participation gap. Female labour force participation stands at 33.9 percent, compared to 68.6 percent for men. Closing this gap is a key structural reform priority under Sri Lanka’s International Monetary Fund Extended Fund Facility (EFF) programme, which highlights the importance of modernizing labour laws to expand labour supply and support long-term economic growth.

Debates on reforming these restrictions are often framed around the concern that removing gender-specific protections could expose women to exploitation. However, a woman’s vulnerability in the labour market is shaped less by the absence of gender-specific laws and more by structural challenges such as inadequate public transport, poor workplace infrastructure, weak enforcement of law and order, and limited access to childcare.

Addressing these underlying barriers is critical to ensuring both protection and opportunity. True empowerment requires shifting the focus from paternalistic hour-caps to creating a safe, gender-neutral environment that allows women the agency to maximize their earnings and contribute fully to the national economy.

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Drifting lubricant barrels trigger oil spill on southern coast; 99% of clean-up completed

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Samantha Gunasekara

Authorities have traced the oil contamination reported along sections of the Hikkaduwa and Peraliya coastlines in the Galle District to drifting barrels of industrial lubricant, while rapid response teams have already removed almost all visible oil deposits from the affected beaches.

The Marine Environment Protection Authority (MEPA), together with the Sri Lanka Coast Guard, launched an immediate response after oil patches were detected along about a 20-metre stretch of coastline in the Hikkaduwa and Peraliya areas.

Addressing a media briefing at the Ministry of Environment, MEPA Chairman Samantha Gunasekara said emergency shoreline clean-up operations began on March 7 under the instructions of Environment Minister Dammika Patabendi.

“Nearly 99 percent of the oil patches have already been cleared from the affected coastal stretch,” Gunasekara said, adding that the swift intervention by authorities had prevented the incident from escalating into a wider marine pollution crisis.

Investigations carried out by MEPA have confirmed that the contamination originated from barrels containing Shell Corena S2 P 100 lubricant oil that had apparently been lost at sea and later drifted ashore.

The lubricant manufactured by Shell plc is commonly used to lubricate the internal components of reciprocating piston air compressors. Officials said the substance is not classified as a hazardous or toxic oil, easing initial fears of severe environmental damage.

MEPA General Manager Jagath Gunasekara said monitoring of the coastline was continuing to ensure that no additional oil patches washed ashore.

Meanwhile, the Department of Wildlife Conservation said there had been no confirmed reports of harm to marine animals, including sea turtles and coastal wildlife, following inspections in the affected areas.

Wildlife officials said they were continuing to keep the situation under close observation to ensure that marine fauna along the southern coast remained safe.

Authorities stressed that protecting the ecological integrity of the southern coastal belt—particularly around the Hikkaduwa marine area—remains a priority, while further investigations are under way to determine how the lubricant barrels ended up drifting in Sri Lankan waters.

By Ifham Nizam

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Support for psychological well-being: Launch of telemedicine psychology program in response to Ditwa Cyclone

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The Sri Lanka College of Psychiatrists has launched an innovative telemedicine psychology program designed to provide essential support and mental health care to individuals adversely affected by the Ditwa Cyclone. This initiative is a vital response to the psychological challenges faced by the community in the aftermath of the disaster.

However, the implementation of this program has faced significant obstacles, primarily due to a considerable lack of access to smart devices among the target beneficiaries. Recognizing the urgency of this situation, S-lon Lanka (Pvt) Ltd has made a commendable contribution by donating tablet devices through its corporate social responsibility initiative, the “Suwasahana Charika” Program. This generous donation aims to bridge the technological gap, ensuring that individuals in need can access the psychological services offered by the telemedicine program.

The collaborative efforts were strengthened during a recent event that was attended by key figures, including Mr. S.C. Weerasekara, the Group Director / Chief Operating Officer of The Capital Maharaja Group, and Dr. Dashanthi Akmemana, the Chairman of the Sri Lanka College of Psychiatrists.

The Sri Lanka College of Psychiatrists expressed its gratitude to S-lon Lanka for its support and is committed to addressing the community’s mental health needs during this challenging time.

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