The Vehicle Importers Association of Sri Lanka has warned that the government’s new 50% surcharge on vehicle imports could increase vehicle prices by at least Rs. 1.5 million.
Association spokesperson Arosha Rodrigo stated that the expected price increases are being driven by a combination of:
- The new import surcharge
- Existing customs duties
- Recent foreign exchange rate increases
According to Rodrigo, the rising costs are making vehicles increasingly unaffordable for both importers and consumers.
“Vehicle prices are increasing at a rate that no one can afford. In addition, the new surcharge is unaffordable for vehicle importers. Many vehicles could increase by Rs. 1.5 to 2.5 million,” he said.
He explained that customs duties on all imported vehicles — including those brought in privately or through dealers — will increase under the new surcharge structure.
Rodrigo further noted that importers who opened letters of credit before May 15 would be exempt from the surcharge itself, but they would still face increased costs due to the appreciation of the United States Dollar and the Japanese Yen.
The association also warned that the combined impact of:
- The surcharge
- Currency fluctuations
- The recent 2.5% increase in Social Security Contribution Tax (SSCL)
could lead to major price increases across Sri Lanka’s vehicle market.
