Sri Lanka Customs has confirmed that vehicle imports have not declined significantly despite the surcharge imposed earlier this year, with imported vehicles continuing to enter the market and the small volume drop having no monetary impact on state revenue, Newswire reported.

Customs spokesperson Chandana Punchihewa said vehicle imports contribute around 30 per cent of total Customs income and that monthly figures show a steady contribution. In January, total revenue was Rs. 235 billion, with Rs. 91 billion from vehicles. February brought Rs. 215 billion total / Rs. 75 billion from vehicles; March Rs. 231.9 billion / Rs. 77 billion; April Rs. 242.9 billion / Rs. 84 billion; and May 1–28 Rs. 212 billion / Rs. 76 billion.

Punchihewa attributed part of the revenue resilience to the rise in the dollar rate, partly driven by the Middle East conflict, which has inflated the rupee value of customs duties and offset any volume-related decline. He added that last year vehicle imports accounted for 30–35 per cent of Customs revenue and the trend is continuing this year.

“Despite the surcharge, no reduction has been reported as previously expected,” he said, while also noting that a large number of vehicles remain unsold in the market.

The remarks come three weeks into a 50% customs surcharge on imported vehicles imposed for three months from May 16 — a measure the Finance Ministry presented as a tool to slow the import surge that had driven vehicle imports to Rs. 195.95 billion in Q1 2026, a 900% jump year-on-year. Deputy Minister of Industries Chathuranga Abeysinghe had separately argued vehicle imports were a necessity, not a luxury, on a five-year-replacement cycle, while the Department of Motor Traffic has been working through registration backlogs caused by the import wave.

Sri Lanka lifted its pandemic-era vehicle import ban in early 2025; full-year imports for 2025 reached USD 2.04 billion, the third highest on record. Today’s Customs disclosure is the most granular monthly breakdown of vehicle-related revenue published this year and suggests the surcharge is being absorbed by higher unit prices rather than fewer shipments.

Sources: Newswire — No fall in vehicle imports despite surcharge, SL Customs; The Island — Vehicle imports remain steady despite surcharge — Customs.