– Vehicle prices are set to rise further following the Government’s decision to extend the 50% surcharge imposed on vehicle import duties until December 31, the Vehicle Importers Association of Sri Lanka (VIASL) said.The surcharge was due to expire today (15), but the Government has extended it for another four months, meaning vehicles imported under Letters of Credit (LCs) opened after May 15 will continue to be subject to the additional duty.

VIASL President Prasad Manage said the extension would result in substantial increases in vehicle prices once newly imported stocks reach showrooms.He said vehicles currently available at showrooms had been imported under LCs opened before May 15 and are therefore not affected by the surcharge.

However, vehicles imported under LCs opened after May 15 will be subject to the additional 50% surcharge, which is expected to be reflected in their selling prices.Manage said the association had expected the surcharge to be discontinued when it reached its original expiry date.“We expected the surcharge would not be extended, but due to various reasons it has been continued. As a result, we can expect further increases in vehicle prices,” he told the media.According to the VIASL, the anticipated increases include around Rs. 500,000 for a Suzuki Wagon R, Rs. 1 million for a Toyota Raize and between Rs. 1.5 million and Rs. 2 million for a Honda Vezel.

The association estimates that a Toyota Prado could become about Rs. 3 million more expensive, while a Land Cruiser could see an increase of around Rs. 5 million.Double-cab vehicles are also expected to increase by approximately Rs. 2 million to Rs. 2.5 million.