The Government has introduced a 50% surcharge on customs duties for privately imported cars and jeeps in a move aimed at controlling foreign currency demand and protecting the stability of the Sri Lankan rupee.

Deputy Minister of Finance and Economic Development Nishantha Jayaweera said the new surcharge applies only to private cars and jeeps, while public passenger buses, goods transport lorries, motorcycles, three-wheelers and tractors have been excluded.

The Deputy Minister also announced that President Anura Kumara Dissanayake has appointed a special committee to prepare a new Customs Act to replace the existing law and modernise customs operations.

He said the Government plans to introduce advanced scanning systems at customs points, allowing faster document processing and electronic payments before cargo arrives while reducing unnecessary physical inspections.

Meanwhile, Deputy Minister Anil Jayantha rejected claims that recent customs valuation changes could increase vehicle prices by millions of rupees, stating that reduced valuations cannot lead to higher taxes.

He clarified that the 50% surcharge is a temporary three-month measure and not a revenue collection strategy, but a step taken to manage sudden foreign currency demand.

The Government said the measure is not intended to restrict imports or slow economic growth, but only to prevent pressure on the rupee caused by a sudden increase in vehicle imports.