Sri Lanka imposes three-month 50% surcharge on motor vehicle import duty
→Vehicle importers must fund a 50% duty surcharge unless LC was opened by 15 May
Change
Sri Lanka imposed a temporary 50% surcharge on Customs Import Duty for covered motor vehicle imports for three months, with Letters of Credit opened on or before 15 May 2026 exempt.
Why it matters
The surcharge increases duty payable at customs clearance for covered buses, passenger cars, hybrid and electric vehicles, ambulances, motorhomes and other specialised vehicles. The exemption turns LC timing into the first clearance question: shipments backed by Letters of Credit opened on or before 15 May avoid the surcharge, while later import arrangements fall inside the three-month duty window.
Implications
- → Vehicle importers and distributors must separate shipments by Letter of Credit opening date before clearance — consignments without LC cover opened on or before 15 May 2026 face the 50% Customs Import Duty surcharge.
- → Customs brokers and clearance teams must apply the surcharge to covered vehicle entries across general and preferential duty categories from 16 May 2026 — omitting it produces incorrect duty filings.
- → Vehicle dealers' pricing and procurement teams must update landed-cost and retail pricing for surcharge-covered inventory — duty under-provision will understate import cost during the three-month window.
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