A fresh 2.5% tax on imported vehicles from April 1 is expected to push car prices higher, adding new pressure on buyers and the auto market.
The Vehicle Importers Association has announced that a new 2.5% tax on imported vehicles will take effect from April 1. Media spokesperson Arosha Rodrigo stated at a Colombo briefing that the levy, imposed by Sri Lanka Customs, could lead to a noticeable vehicle price increase across the market.
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Rodrigo clarified that this tax was approved under the 2026 Budget and will apply to newly imported vehicles. However, it will not affect vehicles currently in the clearance process.
Industry stakeholders warn that the additional import tax may further impact affordability and demand.
