Sri Lanka has implemented a temporary surcharge of 50 percent on Customs Import Duty for new personal vehicles, effective from May 16 for a duration of three months. This measure is intended to curb vehicle imports and mitigate the depreciation of the rupee, as stated by Deputy Finance Minister Anil Jayantha.
As a result of this surcharge, individuals who order new personal vehicles within the upcoming three-month period, ending on August 15, will be subject to a 45 percent Customs Import Duty, an increase from the current rate of 30 percent.
The Junior Finance Minister explained that the primary aim of this tax is to postpone the importation of new personal vehicles by three months. He noted that the surge in vehicle imports has been exerting undue pressure on the exchange rate.
According to data from the Central Bank, the rupee has depreciated by 4.5 percent against the US dollar since the beginning of the year, as of May 15, 2026.
Jayantha mentioned that this move is also intended to deter opportunistic behavior among traders and dealers, emphasizing the government’s commitment to maintain and navigate the country toward stability that has already been achieved. He clarified that the surcharge is applicable only for a limited category of vehicles and for a brief period.
He assured that this measure should not influence market prices. The intention is to encourage a delay in vehicle imports for three months, although importers requiring specific vehicles during this timeframe will need to pay the additional surcharge.
Notably, the surcharge does not apply to motorcycles, three-wheelers, or commercial vehicles. Jayantha also added that individuals can still import vehicles deemed essential without incurring extra charges if their Letters of Credit were established before May 15.
(Colombo/May 16/2026)
