The Ceylon Motor Traders' Association (CMTA) has issued an urgent appeal to authorities, calling for immediate action to address what it describes as a significant leakage of government revenue amounting to Rs.40 billion within Sri Lanka's automotive industry.
A Century-Old Voice Raises Concerns
Founded in 1919 and affiliated with the Ceylon Chamber of Commerce, the CMTA is Sri Lanka's oldest and most established automotive trade association. The body has long served as a key representative of the country's motor trading sector, and its latest call to action carries considerable weight given its historical standing and industry expertise.
The association is pressing for greater consistency, transparency, and fairness in the policies that govern the nation's automotive sector, warning that the current environment is enabling a substantial loss of public funds that could otherwise support Sri Lanka's economic recovery efforts.
Revenue Leakage a Growing Concern
At a time when Sri Lanka continues to navigate the aftermath of its worst economic crisis in decades, the CMTA's warning about a Rs.40 billion revenue shortfall in the automotive segment is particularly alarming. The association argues that policy inconsistencies and a lack of regulatory transparency are creating conditions under which significant tax and duty revenues are slipping through the cracks.
The motor trading industry has historically been a meaningful contributor to state revenue through import duties, taxes, and related levies. Any systemic leakage at this scale, the CMTA contends, not only deprives the government of critical income but also undermines fair competition among legitimate, compliant traders.
Call for Policy Reforms
The CMTA is urging policymakers and relevant government authorities to take swift and decisive steps to plug these revenue gaps. Among the core demands are:
- Stronger enforcement mechanisms to prevent undervaluation and other forms of revenue evasion in the automotive import process
- Clear and consistent regulatory frameworks that apply equally to all stakeholders in the sector
- Greater transparency in the formulation and implementation of automotive-related policies
- A collaborative dialogue between industry representatives and government bodies to ensure sustainable and equitable outcomes
Broader Implications for Sri Lanka
The association's concerns reflect a wider challenge facing Sri Lanka as it works to strengthen its fiscal position and restore economic stability. Ensuring that revenue collection mechanisms function efficiently and fairly across all sectors, including automotive trade, is considered essential to the country's International Monetary Fund-backed reform programme.
Industry stakeholders have long maintained that a level playing field and consistent policy application are fundamental to sustaining investor confidence and encouraging compliance across the board.
The CMTA has indicated it remains committed to constructive engagement with the government and regulatory authorities, and hopes its call will prompt a thorough review of existing frameworks governing the automotive industry in Sri Lanka.
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parallel imports and permit holders both eating from same plate no
CMTA talking sense but who is actually listening in this country
40 billion gone just like that and goverment still acting blind
not acting, they know exactly what happening lah