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Detention of BYD EVs sets ‘dangerous precedent’: Expert
By Nishel Fernando
A move by Sri Lanka Customs to detain over 1,000 BYD Atto 3 electric vehicles over allegations of misdeclared motor capacity is being slammed by a top motor industry expert as a misguided action that sets a dangerous precedent for the rule of law and investor confidence in Sri Lanka.
The criticism comes from economist and Former Chairman of the Ceylon Motor Traders Association (CMTA), Sheran Fernando, who argued that the customs authority is unilaterally redefining globally accepted standards, potentially at the behest of market rivals.
The dispute centers on the motor capacity declared for the imported BYD Atto 3 models. The importer, John Keells Group (JKCG Auto), declared the vehicles with a manufacturer-rated motor power of 100 kW. However, Customs officials have raised concerns that the motor is capable of a 150 kW output, which would attract a significantly higher excise duty of approximately Rs. 5.4 million compared to the Rs. 2.4 million for a 100 kW vehicle.
In a strongly worded social media post, Fernando dismantled the basis for the detention.
“Let’s be clear: the duty for electric vehicles is calculated based on the manufacturer-rated motor power — in this case, 100 kW. This is not just industry convention; it is the globally accepted standard for tariff classification, homologation, and customs documentation. The performance of the Atto 3 aligns perfectly with this 100 kW specification.”
He stressed that whether the same motor hardware could potentially be rated at 150 kW is “of no relevance to the credibility of the Customs Declaration made by Keells as the importer.” A vehicle genuinely operating at 150 kW would exhibit vastly superior performance in acceleration, top speed, and torque.
The practice of manufacturers offering the same model with different power ratings, often limited by software, is common globally. BYD itself markets a 100 kW version of the Atto 3 in Singapore to conform to the country’s specific vehicle entitlement category.
Fernando voiced grave concerns about the procedural overreach by Sri Lanka Customs.
Under the current Customs Ordinance, the Department of Customs acts as investigator, prosecutor, judge, and jury — a concentration of unchecked authority that opens the door to arbitrary decisions and selective enforcement,» he warned.
This “high-handed approach,” he argued, has severe consequences for the nation’s economy. It undermines policy consistency, disrupts the operations of law-abiding businesses, and scares away genuine investors at a critical time for Sri Lanka.
Raising questions about the motives behind the action, Fernando suggested the move could be driven by market dynamics rather than regulatory compliance.
“The targeting of Keells and BYD whose competitive pricing, product quality, and delivery capability disrupted the EV segment, and the entire traditional motor industry, appears less about compliance and more about pressure from rivals unable to compete,” he wrote. “When government authorities are weaponised in this way, it signals dysfunction, not governance.”
The detention affects approximately 1,000 vehicles that arrived in six separate consignments. This follows the successful clearance and sale of over 1,000 similar vehicles to end-users in previous months.
A spokesperson for JKCG Auto, the local agent, confirmed the vehicle’s specifications, stating, “There are different vehicles with different performance made by BYD. This model is available not only in Sri Lanka but also in countries like Singapore and Nepal. And the configuration is done by the manufacturer.”
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