IntelScoops

Colombo, Sri Lanka – July 30, 2025
John Keells Holdings (JKH), the official distributor for Chinese electric vehicle giant BYD in Sri Lanka, has denied allegations of understating the motor output of over 1,000 imported vehicles currently detained by Sri Lanka Customs in connection with a suspected duty evasion scheme.

The controversy centers on claims that the declared specifications of the BYD electric vehicles may not match their actual performance capabilities, potentially leading to lower import duties than what would be applicable for higher-output models.

In a statement, JKH defended its declarations, explaining that in many cases, different power outputs can be achieved using the same motor through software configurations and minor hardware changes. The company emphasized that the vehicles imported were in full compliance with manufacturer specifications and aligned with customs declarations based on available documentation.

However, Sri Lanka Customs has pushed back against this narrative. Additional Director General of Customs, Seevali Arukgoda, told a parliamentary oversight committee that JKH was not fully cooperating with the investigation and has been delaying verification procedures. In particular, Customs requested that one of the motors be removed from a detained BYD vehicle and tested at the University of Moratuwa to independently verify its specifications.

JKH, however, refused the request, citing a lack of technical expertise locally to safely remove the motor without risking damage to the vehicle or voiding warranties.

Authorities say the delay in testing is hampering the investigation, which could determine whether the lower duty assessments were a result of deliberate misrepresentation or legitimate classification.

The outcome of the probe could have significant implications for the EV import sector in Sri Lanka, which has grown rapidly in recent years amid rising demand and shifting government policy favoring clean energy vehicles.

Sri Lanka Customs is continuing its inquiry, and parliamentary committees have called for greater transparency and cooperation from all stakeholders involved.

🚗 BYD Duty Probe: What’s Going On?

Over 1,000 BYD electric cars imported by John Keells Holdings are being held by Sri Lanka Customs in a suspected duty underpayment case.

🔍 The Allegation: Customs suspects the motor output was understated, reducing payable taxes.

🛠️ JKH Responds:
Claims different power levels use the same motor, altered via software and minor hardware—insists specs match documents.

⚠️ Customs Frustrated:
Says JKH is delaying the investigation and refused to remove a motor for independent testing at Moratuwa University, citing lack of local expertise.

📌 Why It Matters:
This could reshape EV import policies, affect tax structures, and influence the future of electric mobility in Sri Lanka.