Sri Lanka, June 30 -- Sri Lanka's automotive industry could see government revenue leakages exceed Rs.100 billion by the end of this year, due to unchecked regulatory loopholes and systemic undervaluation, Ceylon Motor Traders Association (CMTA) Chairman Andrew Perera warned.

The projected leakage is a significant figure when set against the state's wider fiscal position: it amounts to close to 2 percent of Rs.5.3 trillion in total government revenue budgeted for 2026 and to roughly a fifth of Rs.550 billion in vehicle import tax revenue the Parliamentary Committee on Public Finance has projected the sector will generate this year.

Addressing the association's 106th Annual General Meeting in Colombo last Friday, Perera said the revenue...