EconomyPoliticsHOT3h ago

Sri Lanka Imposes 50% Surcharge on Imported Vehicles for Three Months

TLDR

50% surcharge on import duty + 50% deposit imposed.
Effective May 16, 2026 for three months; LCs by May 15 exempt.
VIASL warns of Rs. 1.5M-2.5M vehicle price hikes.

Sri Lanka's Ministry of Finance has announced the imposition of a 50% surcharge on applicable Customs Import Duty for imported vehicles. This new levy, effective today, May 16th, will remain in force for a period of three months. The surcharge is applied on top of existing duties, such as the 30% import duty previously charged on motor cars, and covers various vehicle types. However, vehicles for which Letters of Credit were opened on or before May 15th are exempt from this additional charge. The measure was formalized through a special gazette notification issued under the authority of President Anura Kumara Dissanayake.

2 Updates

Update #3\u00b7 May 16 · 8:32 AM

The Deputy Minister of Finance and Economic Planning, Dr. Anil Jayanth Fernando, has clarified that the surcharge was implemented to manage the country's reserves due to a sharp increase in import expenses over the past two months. Separately, the Vehicle Importers Association of Sri Lanka (VIASL) has warned that the surcharge, combined with existing duties and currency rate increases, will lead to vehicle price hikes of at least Rs. 1.5 million, and potentially up to Rs. 2.5 million per vehicle.

Update #2\u00b7 May 16 · 7:01 AM

New articles clarify that the 50% surcharge is levied on the existing customs import duty, not directly on the vehicle's value. It is confirmed to be implemented for a three-month period starting May 16, 2026. The surcharge was issued by Anura Kumara Dissanayake, acting as Minister of Finance, Planning, and Economic Development, under Section 10A of the Customs Ordinance Act, via a special gazette notification. Crucially, vehicles imported via Letters of Credit (LCs) opened on or before May 15, 2026, are exempt from this new surcharge. One source also indicates a 50% import deposit is required on the normal and preferential tax for affected vehicles.

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