There will be a price increase in other imported goods as well, excluding vehicles, in the coming days.

The government is currently focusing on several new measures aimed at controlling the rapid increase in the country's import expenditure and the continuous depreciation of the rupee. As one major step, the government recently decided to increase the surcharge levied on vehicle import customs duties to 50 percent to limit foreign exchange outflow and alleviate pressure on the rupee.

Commenting on this, a senior government official pointed out that the government is currently engaged in a comprehensive study to protect foreign exchange reserves by identifying import sectors that heavily consume the country's dollar reserves and introducing certain restrictions on them. According to Central Bank of Sri Lanka data, the rupee depreciated by approximately 3.6 percent against the US dollar during the period from January 1st to May 8th. Additionally, as of last Friday, the bank selling price of the dollar was recorded at Rs. 330, indicating a rapid depreciation of 4.5 percent.

Deputy Minister of Finance, Anil Jayanta Fernando, stated that this new customs duty surcharge would be implemented for a period of three months only, with the expectation of discouraging vehicle imports. He emphasized that despite a lack of significant demand in the market, numerous Letters of Credit (LCs) have been opened for vehicle imports, and individuals without urgent needs would have the opportunity to purchase vehicles after this three-month period. The government has announced that this new surcharge will be effective from May 16th, but the tax increase will not apply to Letters of Credit opened on or before May 15th.

However, the Vehicle Importers' Association of Sri Lanka (VIASL) warns that this new tax revision will increase vehicle prices by at least Rs. 1.5 million, making it extremely difficult for ordinary people to purchase a vehicle. Meanwhile, the Deputy Minister mentioned that the government is also working to prevent tax evasion and increase government tax revenue, as well as to simplify the tax system. Specifically, information has revealed that certain parties obtain insurance policies to evade income tax payments, and therefore, steps will be taken in the future to amend existing laws to cover such legal loopholes.

Importers point out that as a direct result of the continuous weakening of the rupee, the prices of all other imported goods will also rise rapidly in the coming weeks. Especially due to the war situation in the Middle East and the decline in production amidst the fertilizer crisis, India has taken urgent steps to ban sugar exports until September 30th. With India's decision to move from restricting to completely banning sugar exports, local sugar importers are now forced to turn to alternative markets such as Thailand and Brazil.

P. Subramaniam, Secretary of the Pettah Essential Goods Importers' and Traders' Association, states that there are currently sufficient sugar stocks in the country for the next two months. However, he pointed out that in the future, sugar will have to be imported from other countries at a higher cost, and traders importing goods on a 90-day credit period are facing a severe financial crisis due to the depreciation of the rupee. According to the 2025 Central Bank of Sri Lanka report, USD 368 million was spent on importing sugar and confectionery alone last year, which shows a slight decrease compared to the USD 390 million import expenditure recorded in 2024 due to steps taken to increase domestic production.