Press briefing of Cabinet Decision taken on 2023-09-11

Incentivizing assembly of Electric Vehicles

- Many Asian countries have adopted a more favorable approach by imposing a tariff rate of zero per cent (0%) on the assembly and production of Electric Vehicles (EV) and Plug-in Hybrid Electric Vehicles (PHEV). Through this attractive incentive, it will be able to attract investors and manufacturers as well as focus on future export potential while also complying with global imperative of environmental protection. Accordingly, the proposal made by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to impose flat zero per cent (0%) tariff on the CIF (Cost, Insurance and Freight) when importing brand new Semi-Knocked-Down (SKD) kits for the assembly of Electric Vehicles with a power rating of up to 500kW, Electric Two‑Wheelers and Plug-in Hybrid Electric Vehicles with engine capacities of up to 3000cc, by the companies which have already entered into Agreements and new companies entering into Agreements with the Board of Investment of Sri lanka that make a minimum investment of US$ 50 million in the Electric Vehicles and Plug-in Hybrid Electric Vehicles assembly industry, with a view to promoting the Electric Vehicle manufacturing locally, was approved by the Cabinet.