Vehicle importers announce estimated vehicle price hikes

Colombo, May 18 (Daily Mirror) - The Vehicle Importers Association of Sri Lanka (VIASL) has announced the estimated price increases following the Government’s decision to impose a 50% surcharge on vehicle imports.

According to VIASL, the combined impact of the surcharge, currency appreciation and existing taxes could push up vehicle prices by between Rs. 1.5 million and Rs. 2.5 million depending on the model.

Industry estimates suggest price increases across several categories as follows: Mini Cars / Kei CarsAlto/Carol – Rs. 421,750, Alto/Carol Hybrid – Rs. 542,250, WagonR/Flair – Rs. 482,000, WagonR/Flair Hybrid – Rs. 602,500, Dayz Highway Star – Rs. 662,750, EK X – Rs. 723,000, Compact CarsPasso/Boon – Rs. 542,250, Yaris – Rs. 602,500, Axio Hybrid – Rs. 903,750, SUVs / Hybrid SUVsRaize/Rocky/Rex Hybrid – Rs. 903,750, Vezel X – Rs. 1,084,500, Vezel Z – Rs. 1,205,000, Vezel Z Play – Rs. 1,325,500.

VIASL Secretary Usman Ali said the association did not expect such a significant tax burden and warned that the impact would inevitably be transferred to consumers.

“We did not expect this type of tax on vehicle imports. The dollar rate, yen rate and British pound rate have already increased. In addition, the Government raised the Social Security Contribution Levy (SSCL) by 2.5%, and now a 50% surcharge has been introduced,” he said.

The VIASL further warned that the latest tax decision could intensify concerns over affordability, with even small city cars and compact vehicles expected to record notable price jumps.

The move is likely to fuel debate over whether the surcharge is aimed at protecting foreign reserves and increasing state revenue, or whether it risks placing an even heavier burden on consumers already facing rising living costs.