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Vehicles guide cover: Sri Lanka Extends the Vehicle Import Surcharge to 31 December 2026

Sri Lanka Extends the Vehicle Import Surcharge to 31 December 2026

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The extension

Tax Advisor Sri Lanka reports that the 50% surcharge on Customs Import Duty (CID) for specified motor vehicles has been extended until 31 December 2026 under a notification dated 13 August 2026. The Daily Mirror says the departmental order extends the surcharge on both the General and Preferential basis with effect from 15 August 2026.

What it does to the duty rate

Where the base CID on a vehicle is 30%, the 50% surcharge adds 15%, so the effective CID is 45%. Tax Advisor notes that SSCL, VAT, PAL, CESS and other import taxes are charged separately, so 45% is the customs duty line only, not the total tax on a vehicle.

The letter of credit rule

Vehicles imported under an L/C opened on or before 15 May 2026 may still qualify for transitional relief, but the new order adds conditions:

  • The consignment must have a shipped-on-board date on or before 15 November 2026 on the Bill of Lading or Airway Bill. If it falls after that date, the surcharge applies automatically (Daily Mirror).
  • Importers must supply the details the order lists, including the vehicle identification number, description and technical specifications.

How we got here

Tax Advisor's summary of gazette changes shows the duty has moved several times since imports resumed on 1 February 2025. Sri Lanka resumed vehicle imports from that date, and the surcharge has been introduced, removed and reintroduced since. The most recent reintroduction was gazette 2488/56 dated 16 May 2026.

What this means for buyers

  • If you are importing for personal use, check the shipped-on-board date, not only the L/C date.
  • Ask your importer to quote the full tax stack in writing, not only the CID.
  • The rule is set until 31 December 2026. Nothing we found confirms what happens after that date, so we are not predicting it.

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.

Frequently asked questions

Until when is the vehicle import surcharge in force?

Until 31 December 2026, under a notification dated 13 August 2026, according to Tax Advisor Sri Lanka.

What is the effective customs duty on a car with a 30% base rate?

45%: 30% base duty plus a 15% surcharge (50% of 30%). Other taxes such as VAT and SSCL are charged separately.

Do pre-May L/C vehicles still escape the surcharge?

Only if they were shipped on board on or before 15 November 2026 and meet the order's documentation conditions, according to the Daily Mirror and Tax Advisor.

Sources