Deputy Minister of Finance and Planning Anil Jayantha Fernando has clarified that the recently imposed 50% surcharge on vehicle imports is a temporary measure aimed at reducing pressure on Sri Lanka’s foreign reserves amid a sharp rise in import expenditure.

Speaking at a special media briefing held at the Department of Government Information, Dr. Fernando stressed that the measure is neither a vehicle import ban nor a permanent restriction, noting that the surcharge will remain in effect only for a period of three months.

He explained that the government introduced the temporary surcharge after the country’s import expenditure increased by more than USD 2 billion over the past two months, while Letters of Credit for vehicle imports were also being opened at a rapid pace.

According to the Deputy Minister, the surcharge applies mainly to vehicles imported for personal use and is intended to encourage the public to postpone non-essential imports during the three-month period.

Dr. Fernando stated that individuals who urgently need to import vehicles may still do so by paying the additional surcharge, while those able to delay imports can avoid the extra cost entirely once the temporary period ends.

He also clarified that claims suggesting vehicle prices would rise by 50% are inaccurate and misleading.

“What has been imposed is a 50% surcharge on the existing 30% customs duty, which effectively amounts to an increase of around 15%,” he said.

The Deputy Minister added that the measure is designed to manage foreign exchange outflows without completely restricting vehicle imports, while minimizing the broader impact on market prices and consumers.