More than 1,000 imported vehicles left stranded at Hambantota Port are set to be auctioned or sold through a tender process after their owners failed to complete Customs clearance, prompting authorities to invoke long-standing legal provisions to recover Government revenue.
Sri Lanka Customs has confirmed that around 1,025 vehicles currently remain uncleared at the southern port, with nearly two-thirds about 625 vehicles having occupied port storage facilities for over six months.
The unusually high number of abandoned imports has drawn attention to the practical challenges facing Sri Lanka’s vehicle import sector, where changing economic conditions, financing difficulties, and prolonged storage costs may have discouraged importers from completing the clearance process.
Customs Media Spokesman Chandana Punchihewa stressed that the vehicles are not linked to smuggling, fraud, or any Customs-related violations. Instead, the issue stems solely from importers failing to finalize the legal procedures required to take delivery of their consignments.
Under Section 129 of the Customs Ordinance, Customs has the authority to dispose of uncleared goods after statutory requirements have been met. Authorities intend to exercise that power by selling the vehicles through either public auctions or competitive tenders.
Officials explained that importers are legally required to clear their consignments within one month after paying the applicable taxes and duties. When that deadline is missed, Customs can recover outstanding Government revenue through the sale of the goods.
The law also establishes a clear order for distributing sale proceeds. Taxes due to the Government receive first priority, followed by payment of accumulated port handling and warehouse charges. If money remains after these obligations are settled, the balance is returned to the original importer.
The case also illustrates the monitoring role played by Sri Lanka’s port authorities. Ports are required to notify Customs whenever imported cargo remains uncleared beyond one month. Following such notification, Customs assumes responsibility for initiating legal disposal procedures.
Officials say all required notifications regarding the Hambantota vehicles have already been received, allowing the disposal process to move forward without delay.
Nevertheless, Customs maintains there is still room for flexibility. Importers who can demonstrate valid reasons for their failure to clear the vehicles may submit representations to the department. Authorities say each request will be examined individually before deciding whether exemptions or extensions are justified.
The forthcoming vehicle sales are expected to generate Government revenue while easing storage pressures at Hambantota Port, where prolonged occupation of valuable yard space affects operational efficiency.
Beyond clearing physical space, the disposal exercise underscores the importance of compliance with Customs regulations and highlights the financial consequences faced by importers who fail to meet statutory deadlines. With over a thousand vehicles awaiting their fate, the Hambantota operation has become one of the largest examples in recent years of Sri Lanka Customs enforcing its legal powers to deal with abandoned imports.
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