Vehicle import forex spending drops after new customs surcharge

Sri Lanka's daily foreign exchange outflow for vehicle imports dropped below USD 4 million following the introduction of a temporary surcharge on Customs Import Duties.

Deputy Minister of Finance and Planning Anil Jayantha Fernando stated that despite the surcharge, letters of credit worth USD 88 million were opened for vehicle imports on a single day.

However, the policy began to reduce import-related foreign exchange expenditure.

Last year, Sri Lanka spent an average of USD 5.5 million per day on vehicle imports.

The figure increased to around USD 7 million per day in 2026 due to a rise in the value of letters of credit opened for vehicle imports.

The average per day in June fell to less than USD 4 million, indicating the policy achieved the desired impact.

The Ministry of Finance, Planning and Economic Development implemented the temporary 50% surcharge on applicable Customs Import Duties for specified imported goods with effect from 15 May 2026.

The measure was introduced through an Extraordinary Gazette Notification issued under Section 10A of the Customs Ordinance, as amended by Act Number 83 of 1988.