A statement from the government regarding the news that LC 4,000 was opened the day before the vehicle surcharge was imposed.

The government emphasizes that reports circulating about approximately 4,000 Letters of Credit (LCs) being opened in the country on the day before the new tax surcharge on imported vehicles came into effect are completely false. Dr. Anil Jayanta, Deputy Minister of Finance and Planning, stated this in Parliament today.

The government took steps to impose a new 50 percent surcharge on existing customs import duties for imported vehicles, effective for a period of three months from May 16th. According to data from the Ministry of Finance, only 1,782 Letters of Credit were opened for vehicle imports on May 15th, the day before the relevant gazette notification was issued. However, the Deputy Minister also revealed that after this tax amendment was announced, a high number of 9,429 Letters of Credit were opened on May 18th.

According to the new tax policy, this 50 percent surcharge will be added to the previous 30 percent customs import duty, which will increase vehicle prices by 15 percent. However, the Ministry of Finance had previously announced that this new 50 percent tax surcharge would not apply to vehicles imported under Letters of Credit opened on or before May 15, 2026.

Former Provincial Council member Niroshan Padukka had accused certain vehicle importers of rapidly opening nearly 4,000 Letters of Credit just before this tax amendment came into effect. He pointed out that this process had a severe impact on the depreciation of the Sri Lankan Rupee. Considering this situation, the Sri Lanka Vehicle Importers' Association has also requested the government to conduct an immediate formal investigation into the relevant information.