News
Surcharge on vehicle imports irks SJB, pleases ex-Finance Minister
Opposition and SJB Leader Sajith Premadasa has launched a scathing attack on the government for the 50% Customs duty surcharge on vehicle imports, accusing the latter of burdening the public with additional costs, despite its earlier promises to make vehicles more affordable.
Addressing the media in Tissamaharama, on Saturday, Premadasa said those who had once pledged to make a Vitz car available for Rs. 1.2 million had now moved in the opposite direction by increasing duties on vehicles.
Premadasa questioned assurances given by Deputy Finance Minister Dr. Anil Jayantha Fernando that vehicle prices would not significantly increase due to the surcharge, asserting that the President, the government and its 159 Members of Parliament must take responsibility for the consequences of the decision.
The Opposition Leader also voiced concern over the depreciation of the rupee, warning that the local currency was weakening rapidly against the US dollar and that continued depreciation would lead to higher inflation, rising commodity prices and further increases in the cost of living.
He said economic stabilisation could only be achieved through stronger export earnings, growth in the tourism sector, higher foreign remittances and increased Foreign Direct Investments (FDIs).
Premadasa further accused the President, the Finance Minister and the Government of lacking a basic understanding of economics, claiming that repeated policy mistakes had adversely affected the economy and the public.
He called for an increase in subsidies, arguing that rising living costs were placing families under severe financial strain and affecting their ability to look after their families.
Premadasa added that shoring up foreign reserves and arresting the depreciation of the rupee would be critical in meeting debt obligations and safeguarding public welfare.
Meanwhile, the Vehicle Importers Association of Sri Lanka (VIASL) warned that the Customs duty surcharge would lead to steep increases in vehicle prices, further reducing affordability for consumers.
VIASL spokesperson Arosha Rodrigo told the media that the surcharge, introduced through a gazette notification, had come on top of existing customs duties and the depreciation of the rupee against the US dollar.
“Vehicle prices are rising at a rate that no one can afford. The new surcharge on top of this is unbearable for vehicle importers. Many vehicles will increase by Rs. 1.5 million to Rs. 2.5 million,” Rodrigo said.
He explained that customs duties on all vehicles, whether imported privately or through dealerships, would rise due to the duty surcharge.
Responding to mounting criticism, Deputy Finance Minister Dr. Anil Jayantha urged the public not to be misled by what he described as false claims that vehicle prices would rise by 150% due to the surcharge.
Dr. Jayantha said misinformation was being circulated regarding the surcharge and insisted that claims of a 150% increase in taxes or vehicle prices were “completely false.”
He explained that the temporary three-month surcharge was intended to delay non-essential private vehicle imports and reduce pressure on foreign exchange reserves during a period of economic uncertainty.
“The message we are giving is simple: if you can postpone importing a vehicle for personal use, please do so. This is not a move intended to increase vehicle prices,” he said.
According to the Deputy Minister, existing taxes on vehicle imports were already at approximately 130%, and the newly announced surcharge mechanism had been widely misunderstood in public discourse.
He further clarified that vehicles imported under Letters of Credit opened on or before May 15, 2026, would not be affected by the revised tax structure.
“Even if those vehicles arrive months later, they will continue to be taxed under the previous rates. The new tax structure only applies to LCs opened after May 15,” Dr. Jayantha said.
He also stressed that there was no reason for consumers to rush to purchase vehicles, fearing price increases.
Dr. Jayantha noted that motorcycles, three-wheelers and vehicles imported for commercial purposes had been excluded from the temporary measure.
He maintained that the policy was aimed at managing pressure on foreign exchange reserves, maintaining economic stability and curbing unnecessary import demand during the three-month period.
Meanwhile, former Finance Minister Ali Sabry, in a social media post, has endorsed the government’s decision to impose a 50% Customs duty surcharge on vehicle imports, calling a timely intervention to protect the country’s foreign currency reserves. He has said it is a necessary safeguard.
“The Government’s decision to impose a 50% surcharge on the import of vehicles, in the midst of escalating global uncertainty and external pressures, is a prudent and timely measure aimed at protecting Sri Lanka’s fragile external sector and preserving scarce foreign exchange reserves,” Sabry said in a statement on social media.
He has also praised the government’s decision to exempt the Letters of Credit opened on or before May 15, 2026, from the surcharge. “It avoids unnecessary uncertainty, prevents retrospective complications, and protects already embattled importers from further hardship and arbitrary administrative difficulties. In times of crisis, clarity, consistency, and fairness in implementation are just as important as the policy itself,” the former Minister has said, warning that Sri Lanka’s recovery remains vulnerable to global conflicts that disrupt energy markets, trade routes, supply chains, investor confidence, tourism, and financing conditions.
The Law Association for Asia and the Pacific (LAWASIA) has backed the campaign by the Bar Association of Sri Lanka against the government’s effort’s to extend the retirement ages of judges of the Superior Courts.
T.L Yap, President of LAWASIA, in a statement dated 26 June, has expressed concern over the NPP government’s move in the wake of President Anura Kumara Dissanayake’s recent statement in Parliament on the delay in making the appointments.
The text of the statement: “LAWASIA shares the concern expressed by the Bar Association of Sri Lanka (BASL) on 25th May 2026 in a letter to His Excellency the President of Sri Lanka regarding the prospect of the Government of Sri Lanka introducing an amendment to the Constitution which would increase the retirement age of the Judges of the Court of Appeal and the Supreme Court.
LAWASIA supports the sentiments expressed by BASL in its letter of 25 May, namely: “Extending the retirement age of the sitting Judges of these Courts at this point of time is likely to be viewed by the public as a blatant attempt to interfere with the judiciary… The independence of the Judiciary and the public confidence reposed in it, are indispensable pillars of the rule of law and the democratic framework of (Sri Lanka).
In that regard it is of paramount importance that the Judiciary must not only remain independent in fact but also must be seen by the public to be wholly independent, impartial, and free from even the slightest perception of influence, favour, accommodation, or impropriety”
The Constitution of Sri Lanka recognizes the independence of the judiciary and its importance in preserving and maintaining the rule of law. The retirement age of senior judges is presently fixed by Article 107(5) of the Constitution. Constitutional amendment in any jurisdiction is a serious matter which must not be undertaken lightly. LAWASIA’s principal concern is that the proposed constitutional amendment has the appearance of an ad hoc initiative without adequate public consultation. This in turn has the potential to undermine public confidence in the judiciary.
An independent, competent and respected judiciary is the cornerstone of any democracy. LAWASIA has long advocated the fundamental importance of this principle.
The essence of LAWASIA’s formal position in relation to the independence of the judiciary lies in the Beijing Statement of Principles on the Independence of the Judiciary in the LAWASIA Region, adopted at the Conference of Chief Justices held in Beijing in 1997 and subsequently signed by 32 Chief Justices from across the Asia-Pacific.
The Beijing Statement in essence emphasizes the fundamental importance of the independence of the judiciary, and comments on a range of related issues including the objectives of the judiciary, the appointment of judges, the tenure of judges, judicial conditions and the relationship between the judiciary and the executive.
Endorsing the concerns raised by another international organization, the Commonwealth Lawyers Association, LAWASIA accordingly calls upon the authorities in Sri Lanka to:
• refrain from proceeding with the proposed constitutional amendments seeking to increase the
retirement age of members of the Judiciary;
• resist piecemeal and ad hoc amendments to the Constitution of Sri Lanka.
• adhere to due process of consultation and stakeholder engagement in constitutional reform;
• desist from taking any steps which would undermine confidence in the Judiciary and
irreparably diminish the independence of the judiciary; and
• ensure adherence to the rule of law and respect for the independence of the judiciary.
A total of 7,300 young people, below the age of 21, had been arrested on suspicion since the launch of the nationwide ‘Ratama Ekata’ anti-drug operation, DIG in charge of the Police Narcotics Bureau, Ashoka Dharmasena, told The Island yesterday.
DIG Dharmasena said the suspects included about 150 females under the age of 21. He added that more than 214,000 suspects had been taken into custody since the commencement of the national anti-narcotics operation.
The operation was launched with the primary objectives of disrupting the supply of narcotics across the country, reducing the demand for illegal drugs and rehabilitating those addicted to narcotic substances, he said.
DIG Dharmasena said law enforcement authorities had so far seized more than 15,000 kilogrammes of narcotics, including cannabis, during the ongoing operation.
He also noted that police had achieved considerable success in intercepting narcotics smuggled into the country by sea, contributing significantly to efforts to curb the illicit drug trade.
The Police Narcotics Bureau said the nationwide operation would continue as part of the government’s broader strategy to dismantle drug trafficking networks and minimise the social impact of narcotics.
by Norman Palihawadane ✍️
Leader of the Abhinava Nivahal Peramuna, Amit Weerasinghe, was yesterday ordered to be remanded until July 3 by Teldeniya Magistrate Kamal Sanjaya Jayatilake over allegations that he defrauded state officials and businessmen of approximately Rs. 120 million by promising to construct cabana holiday resorts in Ella and Digana.
The suspect was produced before court by the Teldeniya Police Headquarters following his re-arrest on fresh complaints. The Magistrate also ordered an investigation into the suspect’s assets and properties, imposed a travel ban, and directed authorities to freeze his bank accounts.
The Teldeniya Police informed the Magistrate that 26 complaints had been received against the suspect so far and that investigations had revealed a large-scale financial fraud.The Magistrate further directed the police to hand over investigations into the alleged fraud to the CID in Colombo by the next court date.
Weerasinghe had previously been granted bail by court but was arrested again following the receipt of additional complaints.
Investigations are being conducted by Teldeniya Police Headquarters OIC CI D. M. Chandrapala and Teldeniya Division SSP Harsha Amarasinghe under the supervision of Central Province Senior DIG Lalith Pathinayake and DIG Sudath Masinghe.
by SK Samaranayake ✍️
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