Sri Lanka Customs Action Leads to Vehicles Sitting Idle at Port

Sri Lanka’s vehicle imports are typically backed by cross-border letters of credit which has been the industry norm for more than a decade, but action taken by Sri Lanka Customs since May 2025 has led to several hundreds of vehicles being stranded at the country’s Hambantota Port.

With importers continuing to rack up hefty demurrage charges and endure substantial financial uncertainty, two main issues have contributed to the situation.