Vehicle Market Will Stay Open, No Tax Hikes Ahead : President

COLOMBO (News 1st); Sri Lanka President Anura Kumara Dissanayake has reaffirmed the government’s commitment to maintaining an open vehicle market, assuring that no new taxes will be imposed on vehicle imports.

Speaking on the reopening of Sri Lanka’s vehicle import market after a five-year hiatus, the President revealed that Letters of Credit (LCs) worth USD 1,267 million have already been opened for vehicle imports. 

He projected that this figure could rise to USD 1,500–1,800 million by the end of the year, reflecting pent-up demand and renewed consumer confidence.

“There were doubts about whether vehicles could be brought in. But look at what’s happening now,” he said. “This is not a burden on the 2022 or 2023 economy. We’ve absorbed it, and we’re managing it.”

President Dissanayake emphasized that Sri Lanka’s aging vehicle fleet—many over 15 to 20 years old—requires renewal, and that the auto sector itself is a vital contributor to the economy. He warned against misinformation and alleged conspiracies aimed at disrupting the market, including false claims about impending restrictions or tax hikes.

“There’s a narrative being created to scare people into rushing purchases and destabilizing the dollar,” he said. “Let me be clear: we will not restrict vehicle imports, and we will not increase taxes on vehicles.”

The President urged citizens to remain calm and assured that the government is focused on sustainable economic recovery, not short-term panic. “If you can’t buy a vehicle this year, you can next year. The market will remain open.”