John Keells CG Auto (JKCG), the sole BYD distributor in Sri Lanka, has rejected claims that it had prior knowledge of the temporary surcharge on imported vehicles announced through Gazette Notification No. 2488/56 dated 15 May 2026. Separately, Deputy Finance Minister Anil Jayantha Fernando said the Government has no intention of restricting vehicle imports.

In a statement on Friday, JKCG said claims that it had opened Letters of Credit (LCs) for BYD vehicles immediately before the gazette were false. “JKCG categorically rejects this claim and states that the company had no prior knowledge of the surcharge,” the company said, adding that no BYD LCs were opened on the day before the gazette or at any point during May 2026. Its most recent BYD orders were placed between March and 30 April 2026, with no further LCs after that period, the company said.

The denial follows public scrutiny of vehicle-import LC patterns after Mujibur Rahman’s parliamentary disclosure that 1,782 vehicles had been imported under LCs in just over a week, which sharpened questions about whether connected importers were tipped off before the gazette took effect. BYD is Sri Lanka’s largest EV importer, making JKCG’s position politically significant.

Fernando, speaking the same day, said the 50 percent surcharge on personal vehicle imports was a temporary measure to ease pressure from the rising dollar rate by postponing personal-vehicle imports for “a few months,” and was not the start of an import ban. He said some consumers had misunderstood the policy as a 50 percent jump in retail prices and that vehicles were being sold at inflated rates to buyers “due to lack of awareness.”

The Deputy Minister said the Government would manage foreign-exchange pressures through fact-based policy and discourage speculation that could destabilise the vehicle market or the wider economy. His comments came on the same day the rupee recovered sharply to Rs. 329 in the spot market, reducing the immediate dollar-pressure rationale for the surcharge.

Sources: Newswire (JKCG), Newswire (Anil Jayantha).