Deputy Minister of Finance and Planning Dr. Anil Jayantha today told Parliament that reports claiming 4,000 Letters of Credit (LCs) were opened on May 15, a day before the government imposed a new 50% surcharge on customs import duties for imported vehicles, are completely false.

He stated that 9,429 Letters of Credit had instead been opened on May 18, after the relevant gazette notification was issued.

The Finance Ministry recently introduced a new 50% surcharge on the existing customs import duty for imported vehicles, effective for a three-month period from May 16.

However, the surcharge does not apply to vehicles for which Letters of Credit were opened on or before May 15, 2026.

Accordingly, the new surcharge is added to the existing 30% customs import duty, resulting in an estimated 15% increase in vehicle prices.

Former Provincial Council member Niroshan Padukka had alleged that certain vehicle importers opened around 4,000 Letters of Credit prior to the tax revision, claiming the move had significantly contributed to the depreciation of the rupee.

The Sri Lanka Vehicle Importers’ Association has also called on the government to immediately investigate the matter.

Responding to the allegations, the Finance Ministry said that only 1,782 Letters of Credit for vehicle imports were opened before the gazette was issued on May 15, while 9,429 Letters of Credit were opened on May 18.