JKCG denies prior knowledge of vehicle surcharge

• Rejects claims over LC timing

John Keells CG Auto (JKCG) yesterday rejected the allegations that it had prior knowledge of the government’s latest temporary surcharge on the imported motor vehicles and had acted in advance by opening Letters of Credit (LCs) before the measure came into effect.
The denial follows the public claims made after the issuance of gazette notification No. 2488/56 dated May 15, 2026, which introduced a temporary surcharge on the imported vehicles, triggering concerns over possible pre-emptive import activity by some market players.
In a statement, JKCG said that it “categorically rejects” the claims that it established the LCs for the BYD vehicles on the day immediately prior to the gazette notification or that it had any advance knowledge of the surcharge.
“No LCs were established for the BYD vehicles a day immediately prior to the relevant gazette notification and the company did not have any advanced knowledge of the surcharge, as falsely alleged,” the company said.
JKCG stated that the vehicle orders are placed regularly as part of its normal business operations and noted that its most recent orders relating to the BYD vehicles were made between March and April 30, 2026.
The company further said that no LCs had been established after April 30, including during May 2026.
The clarification comes amid heightened scrutiny over the vehicle import sector, following the latest tax-related policy adjustment, which added fresh costs to the imported motor vehicles, at a time when the demand has been gradually recovering after Sri Lanka eased the import restrictions.
JKCG said it remains committed to “transparency, good governance and full compliance with applicable laws and regulations” and would continue operating within the prevailing regulatory framework.