Vehicle surcharge leak allegations deepen as opposition questions whether importers knew about the President’s gazette before it was issued.
Vehicle surcharge leak allegations have sparked fresh political controversy after claims that businessmen knew about the President’s gazette before it was issued.
A special gazette notification signed by President Anura Kumara Dissanayake was issued on May 15, announcing a 50% surcharge on customs import duties applicable to vehicles imported into Sri Lanka from May 16 onwards.
Accordingly, the surcharge will be levied for a period of three months from that date.
However, the notification also stated that the new 50% surcharge would not apply to vehicles for which Letters of Credit had been opened on or before May 15.
Deputy Minister of Finance Dr. Anil Jayantha Fernando said the step was taken to limit the amount of dollars flowing out of the country.
Opposition Raises Serious Allegation
However, the opposition has made a serious allegation over the imposition of the surcharge.
Niroshan Padukka, convener of the Samagi Jana Balawegaya’s Anti-Corruption Force, first raised the allegation, claiming that information about the planned surcharge had reached several businessmen before the gazette was issued.
According to Padukka, 4,000 Letters of Credit had been opened on May 15, the day before the surcharge came into effect, to import vehicles.
He alleged that reports indicated two vehicle importers had opened 3,500 and 500 Letters of Credit respectively.
Padukka claimed this amounted to an insider information leak, saying details about the tax had been given to businessmen before the relevant gazette was issued.
Finance Deputy Rejects Claims
Responding to allegations made by Padukka and other opposition figures, Deputy Minister of Finance Dr. Anil Jayantha Fernando addressed Parliament on Thursday, May 21.
“The argument presented there was that on May 15, the very day this decision was taken, 4,000 vehicles were imported, 3,500 of them by one company and another 500 by another company, and that information was leaked and a fraud committed. This is a complete fabrication, false information that has been socialized,” he said.
He stated that the number of vehicles imported on May 15 was only 1,782.
He also said those vehicles were not imported by one company, but by various individuals importing one or two vehicles each.
Padukka Stands By His Claim
However, when BBC Sinhala inquired about the matter from Niroshan Padukka, he said Letters of Credit for 4,000 vehicles had been opened the day before the gazette was issued.
“Before this tax was imposed, 4,000 LCs had been opened, by 10.30 pm on the 15th. Those agencies had even brought pizza to some banks. They worked until 10.30, 11.00 pm. Now the government says 1,782 LCs were opened on the last day. Doesn’t that itself show that there is a corner of the fraud there?” he said.
Padukka also said a request had been made to the Central Bank of Sri Lanka to provide data and information on the matter.
“How Did They Know?” Mujibur Asks
SJB MP Mujibur Rahuman questioned in Parliament on Thursday, May 21, how several businessmen knew before May 15 about the contents of the gazette issued on May 16.
He said several businessmen “in the President’s Rebuilding Sri Lanka programme” had opened Letters of Credit to import the 4,000 vehicles.
“How did that news get out? Isn’t that a fraud? How did they know the President was going to issue a gazette on Saturday? These are organised crimes. Before the President issued the gazette, the car sellers around him went and opened LCs,” he said.
“What this minister said is a lie. He said there weren’t 4,000 in May. Take the last week of May and look. LCs have been opened for 4,000 vehicles. What is he saying ‘no’ to?” Rahuman said in Parliament.
LC Values Before Gazette
Deputy Minister of Finance Dr. Anil Jayantha Fernando revealed the values of Letter of Credit openings in the days leading up to the gazette notification during a programme on Independent Television Network.
May 07 – US$2.6 million
May 08 – US$4.6 million
May 11 – US$3.8 million
May 12 – US$4.3 million
May 13 – US$8.4 million
May 14 – US$11 million
May 15 – US$23 million
May 18 – US$17 million
An analysis of the data shows a rapid increase in vehicle Letter of Credit openings in the three days before the gazette was issued on May 16, particularly from May 13 to May 15.
Notably, LCs worth US$23 million were opened on the day before the gazette was issued.
Vehicle Imports Cost Billions
From December 2024 to May 18, 2026, a total of 614,880 vehicles have been imported into the country.
According to the Deputy Minister of Finance, US$3,161 million has been spent on these imports.
He also said approximately 200,000 vehicles had been imported in the last four months.
