The government announced that it is losing a huge amount of revenue due to vehicle’s of which the original ownership has change but are being still used under the earlier owners’ name without their registration being transferred and vehicles going from hand to hand under open transfers, this also poses problems for institutions implementing the law.

Despite a surcharge on delays had been imposed by the Motor Vehicles (Charges) Ordinance of 2011, it has failed to achieve its objectives, states the government announcement.

Hence, a proposal by Transport and Civil Aviation Minister Nimal Siripala de Silva to provide a grace period of three months and a concessionary fee on the registration of such vehicles where the ownership has changed but the transfer has not been registered within the stipulated period in an attempt to encourage the registration of such vehicles was approved by the Cabinet of Ministers.