Vehicle prices unlikely to decline under new Budget, says Vehicle Importers Association

14-Nov-2026

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Vehicle prices in Sri Lanka are unlikely to decline as the 2027 Budget has not introduced any changes to vehicle import duties or additional levies, said Sri Lanka Vehicle Importers Association Vice President Arosha Rodrigo.

He made these remarks at a media briefing held in Colombo on 13 November 2026.

Speaking further, Rodrigo said that vehicle importers and consumers had been eagerly anticipating relief measures under the Budget presented by the Government.

However, contrary to these expectations, the Government had announced that the existing vehicle import duties and surcharges would continue without any changes.

He said that when the association sought clarification from the Finance Ministry on the matter, the response was broadly that allowing vehicle imports in the first place, given the current dollar-related difficulties and the economic uncertainties arising from the conflict in the Middle East, was itself a significant concession.

The association had repeatedly requested the Government to increase the loan-to-value ratio for vehicle purchases to 160 per cent. However, instead of relaxing the existing restrictions, the Government had issued a new Gazette notification introducing further limitations.

This has made it even more difficult for ordinary consumers to purchase vehicles through leasing arrangements, he said.

According to Rodrigo, the Government has adopted an indirect approach to restricting vehicle imports by reducing consumers' purchasing power through taxes and credit restrictions, rather than imposing an outright ban on vehicle imports.

Many consumers who had postponed their vehicle purchases in anticipation of tax concessions under the Budget have now been disappointed.

As there have been no changes to the existing tax structure, vehicle prices in the market are unlikely to come down, he added.