Vehicle import duties have surged by a staggering 818% year-on-year, reaching Rs. 349 billion in the first nine months of 2025, compared to just Rs. 38 billion during the same period last year, the Finance Ministry’s latest Fiscal Review Report reveals.
The spike comes as motor vehicle imports continue to rebound. According to data released by the Central Bank of Sri Lanka (CBSL) in September, vehicle imports rose to USD 193 million in July alone, pushing the total to USD 668 million for the first seven months of the year.
Central Bank Governor Dr. Nandalal Weerasinghe said last week that the value of vehicle imports is now expected to hit USD 1.5 billion in 2025 — an upward revision from the earlier USD 1.2 billion forecast. This indicates imports could amount to USD 830 million over the final five months of the year.
The International Monetary Fund (IMF) recently acknowledged Sri Lanka’s stronger-than-expected fiscal performance, crediting the surge in motor vehicle import taxation as a major contributor.
However, the IMF cautioned that the revenue jump is temporary, and does not reflect long-term structural improvements in tax administration or economic fundamentals.
