How to Gift a Vehicle to a Family Member in Sri Lanka

Can you really "gift" a vehicle in Sri Lanka without selling it?

Yes, but the Department of Motor Traffic (DMT) does not have a separate "gift" procedure — you use the same ownership transfer process as a sale, just with no money changing hands between you and the family member receiving the vehicle. The DMT still treats it as a change of registered owner, so the same forms, documents and deadlines apply as if you were selling the vehicle to a stranger.

Key facts

• Gift transfers use the same MTA 6 (application for transfer of ownership) and MTA 8 (notice of transfer of possession) forms used for a normal sale.
• The DMT values the vehicle at market value for stamp duty purposes — it does not accept Rs 0 just because you wrote "gift" on the form.
• Stamp duty is charged at 1% of the vehicle's value, paid to the relevant Provincial Council, as of October 2026 — confirm the current rate with your Provincial Council or DMT office before paying.
• The recipient has 14 days from the date of transfer to lodge the paperwork at the DMT before a late-filing penalty applies.
• You need the original CR book, both parties' NICs, a current revenue licence, and a certified photo of the recipient.
• If the vehicle still has a lease or bank mortgage noted on the CR book, it must be cleared and the absolute ownership entry cancelled before any transfer — gift or sale.
• Fees include a DMT service charge and a class transfer fee that varies by vehicle type — check the exact current amounts at your nearest DMT office, since these change from time to time.
• A same-day registration service is available at some Colombo offices (for example Narahenpita and Werahera) for an extra fee; elsewhere it goes by registered post and can take a few weeks.

Do you still have to pay stamp duty if there's no sale price?

Yes. Writing "gift" and a zero or token value on the transfer form does not reduce what you owe, because the DMT substitutes the vehicle's actual market value when calculating the 1% stamp duty. This catches out a lot of families who assume a gift between relatives is free of charges. If you want a rough idea of what your vehicle is worth before you go to the DMT, check similar listings on /price-check or browse comparable vehicles on /vehicles — this gives you a realistic figure to expect the DMT to use, rather than being surprised at the counter.

What documents do you need for a gift transfer?

You need the same document set as a normal ownership transfer, gathered from the current registered owner (the person giving the vehicle):

• The original Certificate of Registration (CR book) — if it's lost, you'll need to apply for a duplicate before you can transfer anything.
• Valid revenue licence for the current year, original and a photocopy.
• Signed MTA 6 forms (both the giver and the receiver sign) and the MTA 8 notice of transfer of possession.
• Certified National Identity Card copies for both parties.
• Two recent photographs of the recipient (around 2 x 2.5 inches), with one photo certified by a Justice of the Peace, Grama Niladhari, or an authorised staff officer.
• A Grama Niladhari residence certificate if the recipient's address is changing on the CR book.
• Luxury tax or diesel tax receipts and photocopies, if those apply to the vehicle.

If the vehicle is registered in a company's name rather than a person's, or if the registered owner has passed away, the process is different — those situations need their own set of extra documents and are worth asking about specifically at your DMT office.

What if the vehicle still has a lease or a bank mortgage on it?

You cannot gift a vehicle that still shows an "absolute ownership" entry in favour of a leasing company or bank — this has to be cleared first, exactly as it would for a sale. The finance company needs to confirm in writing that the facility is fully settled and send a letter to the Commissioner of Motor Traffic requesting cancellation of the absolute ownership entry. Only once that's done, and the CR book is updated, can you move ahead with the family transfer. If you're not sure whether a vehicle still has a lease attached, it's worth checking before you promise it to anyone — you can read more about how leasing works on /leasing.

How much does a gift transfer cost?

Expect to pay a DMT service charge, a class transfer fee that depends on the vehicle category (car, motorcycle, three-wheeler, lorry and so on), and the 1% stamp duty on the market value. These rupee amounts are revised from time to time, so rather than quoting a figure that may already be out of date, confirm the current fees at your nearest District or Divisional DMT office, or on the official DMT website, before you go. Budget a little extra if you're using a same-day service, since that carries an additional charge over the normal postal service.

Step-by-step: how to complete a gift transfer at the DMT

1. Agree the gift and gather documents. Both the giver and the receiver should be ready with their NICs, the CR book, the current revenue licence, and the recipient's certified photographs.
2. Check for any lease, mortgage, fines or court orders against the vehicle. Clear these first — a vehicle with unresolved obligations cannot be transferred.
3. Complete and sign the MTA 6 and MTA 8 forms. Both parties must sign; get one photo of the recipient certified as required.
4. Submit the full set at the DMT (your nearest District Motor Traffic Office, or a Colombo office if you want one-day service) and pay the applicable fees and stamp duty.
5. Keep the receipt and copies of everything submitted until the new CR book arrives, in case there's a query.
6. Collect or receive the updated CR book showing the recipient as the new registered owner, and update the revenue licence and insurance details in the new owner's name.

What happens if you miss the 14-day deadline?

The person receiving the vehicle has 14 days from the date of transfer to lodge the paperwork at the DMT, and missing this triggers a late-filing penalty on top of the normal fees. There's no special leniency for family gifts, so treat the deadline the same way you would for any sale — get the paperwork moving as soon as the gift is agreed, rather than leaving it until the vehicle has already changed hands informally.

What if the recipient can't come in person?

If the family member receiving the vehicle lives overseas or can't visit the DMT in person, they can appoint someone in Sri Lanka through a Power of Attorney to sign and lodge the transfer on their behalf. This is worth arranging well in advance of the 14-day window, since Power of Attorney documents prepared abroad usually need to be notarised and sometimes authenticated before they're accepted locally.

Where to get help if something doesn't match up

If the CR book, revenue licence, or any other document doesn't match what you expect — a different engine number, an outstanding fine, or a mortgage you didn't know about — sort it out before you file the transfer, not after. For general safety checks before handing over any vehicle, see /safety-tips. And if you run into a specific snag with your gift transfer, such as an unusual family situation or a document the DMT office is asking for that you weren't expecting, ask other Sri Lankan vehicle owners who've been through it on the Wahanaya forum — someone has likely dealt with the same DMT office and can tell you what actually happened for them.

Sources

• How to Transfer Vehicle Ownership Correctly - MotorGuide.lk
• What Documents Are Required for a Vehicle Ownership Transfer? - MotorGuide.lk
• Sri Lanka Vehicle Ownership Transfer Fee Calculator (2026) - Induwara.lk