Sri Lanka extends 50% vehicle import duty surcharge until 2026

The Sri Lankan government has extended a 50% surcharge on vehicle import duties, with the measure now set to remain in effect until December 31, 2026. The extension was announced by the Ministry of Finance and issued by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development.

The surcharge applies to various vehicle categories, including buses, motor cars, station wagons, ambulances, hearses, and trucks. It covers vehicles powered by diesel, spark-ignition internal combustion engines, electric motors, and hybrid systems. The measure is applied on top of existing customs import duties levied on both general and preferential bases.

Originally introduced as an emergency measure to protect foreign exchange reserves and stabilize the Sri Lankan rupee during the nation's economic crisis, the surcharge remains a tool to manage the outflow of dollars. While the country has made progress under its International Monetary Fund bailout programme, authorities are maintaining these fiscal controls to prioritize macroeconomic stability.