No reduction in vehicle imports: Customs data challenges Government expectations

Colombo, June 6 (Daily Mirror) - Despite claims that a temporary 50% surcharge on vehicle import duties was introduced to curb non-essential imports and ease pressure on foreign exchange reserves, fresh remarks from the Customs Department indicate that vehicle imports have not seen a significant reduction in 2026, raising questions over the effectiveness of the policy.

Customs Media Spokesperson and Director General Chandana Punchihewa said the Finance Ministry has not imposed a ban on vehicle imports, but instead introduced only a surcharge on existing Customs duties. He noted that the measure had been expected to significantly reduce vehicle imports this year.

However, Customs data suggests that this expectation has not materialised.

Punchihewa said more than 30 per cent of total Customs revenue continues to be generated from vehicle imports, a proportion largely unchanged compared to 2025.

“Discussions between the Sri Lanka Customs Department and the Finance Ministry had forecast that revenue from vehicle imports for 2026 would be considerably lower than the previous year,” he said.

He added that despite expectations of a slowdown, a large number of imported vehicles are still visible in the market, with many yet to be sold.

While import volumes have declined to some extent, revenue patterns indicate a different trend. Customs officials attribute this to the rising value of the US dollar, which has increased rupee-denominated import values, keeping overall revenue levels stable even as the number of imported vehicles falls.

Monthly figures show that Customs collected Rs. 91 billion from vehicle imports in January out of a total revenue of Rs. 235 billion. In February, Rs. 75 billion was collected from vehicle imports out of Rs. 215 billion. March recorded Rs. 77 billion, April Rs. 84 billion, and by 28 May, Rs. 76 billion had already been collected from the sector.

Despite expectations of a sharp decline, vehicle imports continue to account for around 30 to 35 per cent of total Customs revenue, broadly in line with last year’s trend.

The figures have raised questions over whether the surcharge has effectively curbed import demand or whether the impact is being offset by currency depreciation, resulting in higher rupee values rather than a real reduction in import activity.