Monday May 18, 2026
Monday May 18, 2026
Monday, 18 May 2026 00:27 - - {{hitsCtrl.values.hits}}
The Finance Ministry has announced a temporary 50% surcharge on the applicable Customs Import Duty on imported vehicles, with the new measure coming into effect from 16 May as the Government moves to curb non-essential imports and ease pressure on foreign exchange reserves.
According to the official notification issued under the signature of President Anura Kumara Dissanayake in his capacity as the Finance Minister, the additional surcharge will remain in force for a period of three months.
Under the revised tax structure, a 50% surcharge will be imposed on the existing Customs Import Duty applicable to imported vehicles. For example, passenger motor cars that were previously subject to a 30% Customs Import Duty will now attract an additional surcharge on top of that rate.
Authorities said the surcharge will be applicable on both the General and Preferential duty bases. The measure covers a wide range of vehicle categories, including passenger motor cars, buses, jeeps, vans, goods transport vehicles, ambulances, and other land vehicles.
The surcharge will also apply to fully electric vehicles and hybrid vehicles classified under the hybrid vehicle category.
However, the Government later clarified that vehicles imported under Letters of Credit (LCs) opened on or before 15 May will not be subject to the new surcharge, even if those vehicles arrive in the country at a later date.
Following public concern over the announcement, Deputy Finance Minister Dr. Anil Jayantha Fernando urged the public not to be misled by claims that vehicle prices would rise by 150%, describing such reports as completely false.
Speaking on the decision at a special media briefing, he said the measure was introduced as a temporary mechanism to delay non-essential private vehicle imports during a period of economic uncertainty and to reduce pressure on the country’s foreign reserves.
“The message we are giving is simple: if you can postpone importing a vehicle for personal use, please do so. This is not a move intended to increase vehicle prices,” he said.
Dr. Fernando explained that existing taxes on vehicle imports already stand at around 130%, and that the new surcharge mechanism had been widely misunderstood in public discussions.
He stressed that the latest decision does not translate into a direct 150% increase in either taxes or vehicle prices.
He also noted that motorcycles, three-wheelers, and vehicles imported for commercial purposes are excluded from the temporary measure.
According to the Deputy Finance Minister, the policy is aimed at managing import demand, safeguarding foreign exchange reserves, and maintaining macroeconomic stability during the three-month implementation period.
