2.5% tax on imported vehicles to take effect from April 1

Colombo, Feb. 13 (Daily Mirror) - The Vehicle Importers’ Association of Sri Lanka (VIASL) has announced that a 2.5% tax will be imposed on imported vehicles starting from April 1, 2026.

VIASL spokesperson Arosha Rodrigo said the tax was approved under the 2026 Budget and clarified that it will not apply to vehicles currently undergoing the clearing process. The levy will be collected directly by Sri Lanka Customs.

Addressing a press conference in Colombo on Thursday (13), Rodrigo said that the tax would have a considerable impact due to the high value of vehicles.

“Given the high value of vehicles, a 2.5% tax represents a significant addition,” he said. “For instance, a vehicle priced at Rs. 10 million will see an increase of about Rs. 250,000. As a result, vehicle prices are expected to rise noticeably once the tax comes into effect.”

He added that the association expects the new tax to influence market prices across several vehicle categories after April.