Sri Lanka Vehicle Prices Set to Surge Amidst Tax Hikes and Rupee Depreciation

Sri Lanka's vehicle market is bracing for significant price hikes in the next few weeks, driven by new tax revisions and the rapid depreciation of the Sri Lankan Rupee. According to the Vehicle Importers' Association, the cost of importing vehicles has surged by as much as 110%. This could lead to substantial increases, with models like the Raize potentially rising by LKR 8-10 lakhs and a Vezel by LKR 12 lakhs. The Central Bank has indicated that temporary increases in surcharges on vehicle imports, alongside currency fluctuations, are contributing factors.