Speaking on the issue, Dr. Jayantha said misinformation was being circulated suggesting vehicle prices would rise by 50%, describing such claims as “completely false.”
He explained that the newly introduced measure is a temporary three-month surcharge aimed at delaying non-essential private vehicle imports and easing pressure on foreign exchange reserves during a period of economic uncertainty.
“The message we are giving is simple: if you can postpone importing a vehicle for personal use, please do so. This is not a move intended to increase vehicle prices,” he said.
Dr. Jayantha clarified that the new measure does not amount to a direct 50% increase in taxes or vehicle prices.
He further stated that vehicles imported under Letters of Credit (LCs) opened on or before May 15, 2026, will not be affected by the new surcharge. Even if those vehicles arrive months later, they will continue to be taxed under the previous rates.
“The new tax structure only applies to LCs opened after May 15,” he noted.
The Deputy Minister also stressed that there is no reason for consumers to rush into vehicle purchases over fears of rising prices, warning that some parties could use public confusion as a sales tactic.
He added that motorcycles, three-wheelers and commercial-use vehicles have been excluded from the temporary measure.
According to Dr. Jayantha, the decision is intended to reduce pressure on foreign exchange reserves while maintaining economic stability and limiting unnecessary import demand during the three-month period.
