Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando told Parliament today that reports claiming 4,000 Letters of Credit (LCs) were opened on May 15 prior to the introduction of a new vehicle import tax surcharge are “completely false.”
According to the Deputy Minister, a total of 9,429 Letters of Credit for vehicle imports were opened on May 18, after the relevant gazette notification had already been issued.
The Finance Ministry recently imposed a new 50 percent surcharge on the existing customs import duty for imported vehicles for a three-month period beginning May 16, 2026.
However, the surcharge does not apply to vehicles for which Letters of Credit were opened on or before May 15, 2026.
Under the new measure, the surcharge is applied to the existing 30 percent customs import duty, resulting in an estimated 15 percent increase in vehicle prices.
Former Provincial Council member Niroshan Padukka had earlier alleged that certain vehicle importers opened around 4,000 Letters of Credit before the tax revision, claiming the transactions contributed significantly to the depreciation of the rupee.
The Sri Lanka Vehicle Importers’ Association had also urged the government to launch an immediate investigation into the matter.
Responding to the allegations, the Finance Ministry stated that only 1,782 Letters of Credit related to vehicle imports had been opened before the gazette notification was issued on May 15, while 9,429 LCs were opened on May 18 following the announcement.