50% Surcharge on Vehicle Imports; Special Gazette Issued

18-May-2026

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The Ministry of Finance, Planning and Economic Development has taken steps to impose a temporary 50% surcharge on the Customs Import Duty applicable to certain categories of motor vehicles imported into Sri Lanka.

This was stated in an Extraordinary Gazette Notification dated on May 15 issued by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development.

According to the Gazette, the new tax measure has been implemented with immediate effect and will remain in force for the next three months.

The order has been issued under the powers granted by Section 10A of the Customs Ordinance (Chapter 235), as amended by Act No. 83 of 1988. The Ministry of Finance has confirmed that the 50% surcharge will apply to both general and preferential import duty categories.

Accordingly, the surcharge will be imposed on a wide range of vehicles including public transport vehicles capable of carrying 10 or more passengers, motor cars, station wagons, racing cars, ambulances, prison vans, hearses, mobile homes and golf carts.

It has been stated that this regulation will apply to all vehicles falling under technical classifications based on cylinder capacity, engine propulsion type and vehicle age.

However, a concession has also been announced to reduce the impact on vehicle importers. Accordingly, the Ministry stated that the new 50% surcharge will not apply to Letters of Credit (L/Cs) opened on or before 15 May 2026 for the importation of motor vehicles.