August 16, Colombo (LNW): Motorists in Sri Lanka are likely to face another round of vehicle price increases after the Government extended an additional 50% surcharge on vehicle import duties until 31 December, according to the Vehicle Importers Association of Sri Lanka (VIASL).
The levy, which was originally scheduled to end on August 15, will now remain in force for a further four months. Vehicles imported under Letters of Credit opened after May 15 will be subject to the additional charge, meaning the financial impact is expected to become more visible as newer consignments begin reaching dealers.
VIASL President Prasad Manage said the extension would eventually push up showroom prices considerably. He explained that vehicles currently on sale were generally imported using LCs opened before the May 15 cut-off and therefore do not carry the extended surcharge.
The situation is expected to change as stocks imported under later LCs enter the market, with importers likely to pass the higher duty burden on to consumers.
Manage said the industry had anticipated the surcharge would lapse on its original expiry date, but the Government’s decision to retain it had altered expectations for the vehicle market.
According to estimates provided by the association, buyers could see price increases of approximately Rs. 500,000 for a Suzuki Wagon R and around Rs. 1 million for a Toyota Raize. A Honda Vezel could become between Rs. 1.5 million and Rs. 2 million more expensive.
Higher-end models are also expected to be affected. The VIASL estimates that the price of a Toyota Prado could rise by about Rs. 3 million, while a Land Cruiser may cost roughly Rs. 5 million more.
Double-cab vehicles could see increases of between Rs. 2 million and Rs. 2.5 million, further adding to the cost of popular imported vehicles.
With the surcharge now set to remain in place until the end of the year, industry representatives say consumers should expect the full impact to emerge gradually as existing stocks are replaced by vehicles imported under the revised duty structure.