Vehicle Prices to Rise Beyond Reach of Ordinary People: Importers’ Association

18-May-2026

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Following the implementation of the new 50% surcharge, all taxes related to vehicle imports will increase, and vehicle prices will rise to a level where ordinary people will not be able to afford them, stated Roshan Rodrigo, Deputy Secretary of the Vehicle Importers’ Association.

He made these remarks during a media briefing held in Colombo on May 16.

He further stated that amid rising values of the US dollar and British pound, and the increase of the Social Security Levy by 2.5%, an additional 50% surcharge has now been imposed on top of Customs Duty on vehicle imports.

According to the Gazette Notification issued by the Ministry of Finance, the 50% surcharge will be applied to all vehicles for which Letters of Credit are opened from May 18 onwards. As a result, prices of all vehicles will rise sharply.

He stated that under the new surcharge, the price of a Mira vehicle will increase by Rs. 500,000 to Rs. 600,000, the price of a Wagon R will increase by Rs. 700,000 to Rs. 800,000, the price of a Vezel will increase by Rs. 1.7 million to Rs. 1.8 million, the price of a Yaris will increase by Rs. 1.4 million to Rs. 1.5 million, the price of a Race Hybrid will increase by Rs. 1.2 million to Rs. 1.3 million, and the price of a Prado will increase by Rs. 3.5 million to Rs. 4 million.

He reiterated that the new 50% surcharge will lead to an overall increase in all vehicle import taxes and vehicle prices, making it impossible for ordinary citizens to purchase vehicles. Therefore, he urged the government to reconsider the decision or reduce the tax rate.