No need for panic buying ahead of 2.5% SSCL on imported vehicles: Merenchige

The 2.5% SSCL would amount to an additional Rs. 75,000 to Rs. 100,000 depending on the value of the vehicle 

The Vehicle Importers Association of Lanka (VIAL) urged the public not to resort to panic buying of vehicles ahead of the Government’s decision to impose a 2.5% Social Security Contribution Levy (SSCL) on imported vehicles from April 1, 2026.  

Addressing the media, VIAL Chairman Indika Sampath Merenchige assured that vehicle prices would not increase as a result of the new tax.  

He said that vehicle prices in Japan have declined in recent months and that the benefit of this reduction would be reflected in the local market. According to him, the 2.5% SSCL would amount to an additional Rs. 75,000 to Rs. 100,000 depending on the value of the vehicle. 

Merenchige warned that unnecessary panic buying, particularly from the Japanese market, could instead trigger price increases.  

“This SSCL will help the Government generate additional revenue. Most individual importers are evading taxes. Under this system, importers will have to settle the tax at the Ports before releasing vehicles. This will ensure that both registered and unregistered vehicle importers pay the due taxes. There will be no price change in vehicles at local sales centres after April 1,” he said.  

He also called on the Government to introduce regulatory barriers on vehicle sales by individual importers, claiming that some import vehicles without adequate knowledge while sending large amounts of foreign exchange overseas.  

Merenchige said the current market conditions present a favourable opportunity for buyers, noting that vehicle prices have declined compared to four or five months ago. However, he cautioned that some sellers may attempt to raise prices by creating unnecessary fear among consumers.  

Providing current market estimates, he said a Toyota Raize Hybrid is priced between Rs. 14.5 million and Rs. 15 million, while a Honda Vezel RS 2025 ranges between Rs. 20.5 million and Rs. 21 million. The 2025 Toyota Yaris is available between Rs. 9.5 million and Rs. 10 million.  

He added that entry-level vehicles such as Japan Alto, Mazda Carol, Daihatsu Mira, Daihatsu Move, Nissan Dayz and Toyota Rukus are available from Rs. 6.5 million upwards, making them affordable options for budget-conscious buyers.