Friday May 22, 2026
Friday May 22, 2026
Friday, 22 May 2026 00:25 - - {{hitsCtrl.values.hits}}
Deputy Finance and Planning Minister Dr. Anil Jayantha Fernando yesterday ruled out any move to suspend vehicle imports and rejected claims of a sharp surge in letters of credit (LCs), saying recent import demand was already moderating following the Government’s decision to impose a temporary surcharge on vehicle import duties to ease pressure on foreign exchange reserves.
According to the Deputy Minister, 380 LCs were opened on 15 May covering 1,782 vehicles valued at $ 23.71 million.
Dr. Fernando further said the value of vehicle import-related LCs had declined in the days that followed, falling from $ 23.71 million on 15 May to $ 19.9 million on 18 May and further to $ 14.98 million by 19 May.
“It takes time for the market to adjust, but we can already see our policies are having an effect,” he said.
Dr. Fernando accused sections of the Opposition of exaggerating figures to create fear and uncertainty in the market.
He also urged the public not to act on unverified claims circulated on social media, warning that misinformation could lead to unnecessary panic-driven purchasing decisions and financial losses.
The comments come amid the Government’s decision to impose a temporary 50% surcharge on the applicable Customs Import Duty on imported vehicles with effect from 16 May for a three-month period, as part of efforts to curb non-essential imports and ease pressure on foreign exchange reserves.
Under the revised structure, the surcharge applies on top of the existing Customs Import Duty on a wide range of imported vehicles, including passenger cars, vans, buses, jeeps, goods transport vehicles, ambulances, hybrid vehicles, and fully electric vehicles.
However, the Government subsequently clarified that vehicles imported under LCs opened on or before 15 May would not be subject to the surcharge even if the vehicles arrive in Sri Lanka later.
The temporary measure is intended to delay non-essential private vehicle imports during a period of economic uncertainty and pressure on foreign reserves.
