Sri Lanka Vehicle Prices Surge Amidst New Taxes and Valuation Changes

Vehicle prices in Sri Lanka have seen a substantial increase following the implementation of new government taxes and changes to import valuation policies. The Social Security Contribution Levy (SSCL) of 2.5% is now applied to the CIF value plus total taxes for privately imported vehicles. Additionally, a 50% surcharge on existing customs duties has been imposed for three months starting May 16th, and a 15% valuation reduction for used vehicles has been removed. These measures are expected to drive up the cost of popular models by hundreds of thousands to millions of rupees, according to the Sri Lanka Vehicle Importers Association (VIASL). For instance, models like the Honda Vezel Z Play could see prices rise by Rs. 2 million, and the Suzuki Wagon R by approximately Rs. 700,000 to Rs. 750,000.