Sri Lanka imposes 50% surcharge on car imports to protect currency from further slide
Sri Lanka has implemented a 50% surcharge on car imports to address the depreciation of its currency. This temporary measure aims to encourage importers to delay purchases and conserve foreign currency reserves. The rupee has fallen over 3% against the dollar this month, primarily due to external pressures including rising fuel costs.
- ▪The surcharge applies to vehicle imports, excluding motorbikes and three-wheelers.
- ▪The rupee has depreciated from 309-310 to over 322 against the dollar since the beginning of the year.
- ▪Sri Lanka's foreign reserves decreased from $7 billion at the end of March to $6.76 billion by the end of April.
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The Sri Lankan government has imposed a 50% surcharge on vehicle imports — excluding motorbikes and three-wheelers - considering the continuing slide of the country’s currency.President Anura Kumara Dissanayake, who is also the finance minister, in a notification on Saturday (May 16, 2026) said “by this order levy on imported goods specified in the schedule here to a surcharge at the rate of 50% on applicable customs duty effect from May 16 for a period of three months”. Sri Lanka civil war: 17 years later, the imprints remainThe rupee has seen over 3% depreciation against the dollar by mid this month due to prevailing external pressures — primarily the Iran war — which has led to a massive surge in fuel import bill.The rupee, which was 309 to 310 against the dollar at the beginning of…
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