Govt imposes 50% surcharge on imported vehicles for three months

The Ministry of Finance, Planning and Economic Development of Sri Lanka has officially announced the implementation of a temporary 50% surcharge on applicable Customs Import Duty for specified imported goods.

According to an extraordinary gazette notification issued by the Ministry of Finance, Planning and Economic Development, the order has been enacted by virtue of the powers vested under Section 10 A of the Customs Ordinance (Chapter 235), as amended by Act No. 83 of 1988.

The Ministry of Finance, Planning and Economic Development confirmed that the 50% surcharge will apply to both General and Preferential import duty bases.

The new tax measure takes effect from today (16), and will remain in force for a period of three (03) months, it said.

The official directive, sanctioned by the Minister of Finance, Planning and Economic Development, Anura Kumara Dissanayake, outlines that the surcharge specifically targets an extensive schedule of motor vehicles.

The designated categories encompass public transport vehicles designed to carry ten or more persons , motor cars, station wagons, racing cars , specialized vehicles such as ambulances, prison vans, hearses , motorhomes , and golf cars.

The regulation explicitly spans various technical classifications based on cylinder capacity, engine propulsion type—including diesel, semi-diesel, spark-ignition, hybrid, and electric systems—and vehicle age.

However, the Ministry of Finance, Planning and Economic Development stated that this newly imposed order will not be applied to Letters of Credit (L/C) opened on or before May 15, 2026, for the importation of the motor vehicles detailed in the schedule.