Sri Lanka's 50% Vehicle Import Surcharge (May 2026): What It Means

What happened

The Finance Ministry announced a temporary 50% surcharge on the applicable Customs Import Duty on imported vehicles, coming into effect from 16 May 2026 (Daily FT, 18 May 2026). The surcharge was first set to remain in force for three months.

It is a surcharge on the duty, not a 50% tax on the vehicle's price. Daily FT gives the example of passenger motor cars that were previously subject to a 30% Customs Import Duty, which now attract the surcharge on top of that rate.

Which vehicles are covered

According to Ada Derana's report on the gazette, the surcharge applies to both General and Preferential duty bases and targets a wide schedule of motor vehicles, including:

• public transport vehicles designed to carry ten or more persons
• motor cars and station wagons
• specialised vehicles such as ambulances, prison vans and hearses
• motorhomes and golf cars

The schedule spans diesel, semi-diesel, spark-ignition, hybrid and electric propulsion. Daily FT confirms it also applies to fully electric vehicles and to hybrids classified under the hybrid vehicle category.

Who is exempt

• Vehicles imported under Letters of Credit (LCs) opened on or before 15 May 2026 are not subject to the new surcharge, even if they arrive later.
• The Deputy Finance Minister said motorcycles, three-wheelers and vehicles imported for commercial purposes are excluded from the temporary measure.

What officials said

Deputy Finance Minister Dr. Anil Jayantha Fernando said existing taxes on vehicle imports already stand at around 130%, and that the new measure does not translate into a direct 150% increase in taxes or vehicle prices. He described the aim as delaying non-essential private vehicle imports and easing pressure on foreign reserves: "if you can postpone importing a vehicle for personal use, please do so."

Update

The surcharge did not end after three months. See our post on the extension to 31 December 2026.

Fact-checked on 30 October 2026 against the sources listed below. Tax rules and prices change by gazette, so confirm with Sri Lanka Customs or the Ministry of Finance before you pay.