Anil Jayantha Fernando told Parliament of Sri Lanka today that claims stating 4,000 Letters of Credit (LCs) were opened before the new vehicle import surcharge came into effect are “completely false.”
According to the Deputy Minister, a total of 9,429 Letters of Credit for vehicle imports were opened on May 18, after the relevant gazette notification introducing the surcharge had already been issued.
The Ministry of Finance Sri Lanka recently imposed a new 50% surcharge on existing customs import duties for imported vehicles, effective from May 16 for a three-month period.
However, the surcharge does not apply to vehicles for which Letters of Credit had been opened on or before May 15, 2026.
Under the revised system, the additional surcharge is imposed on top of the existing 30% customs import duty, resulting in an estimated increase of around 15% in vehicle prices.
Former Provincial Council member Niroshan Padukka had alleged that certain vehicle importers opened approximately 4,000 Letters of Credit before the tax revision, claiming the move contributed significantly to the recent depreciation of the Sri Lankan Rupee.
Meanwhile, the Sri Lanka Vehicle Importers Association has also called for an immediate investigation into the matter.
Responding to the allegations, the Finance Ministry clarified that:
- Only 1,782 Letters of Credit were opened before the gazette notification on May 15
- 9,429 Letters of Credit were opened afterward on May 18
The issue comes amid growing public debate over rising vehicle prices, increased import costs, and pressure on Sri Lanka’s foreign exchange market.
