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.
News
Diesel replacement costs up to Rs. 4.5 bn in April
Coal power generation falls by 27 GWh
A sharp decline in coal-fired electricity generation in April 2026, compared to the corresponding month last year, may have cost Sri Lanka more than Rs. 4.5 billion, as the country was compelled to rely on significantly more expensive diesel-powered generation to make up the shortfall, according to power sector data.
The coal-based electricity generation, in April 2026, was 27 GWh lower than in April 2025, a development that has sparked concern among energy experts and economists over the mounting financial burden on the country’s already strained power sector.
Industry calculations reveal that generating the lost 27 GWh through diesel-fired power plants would require approximately 8.1 million litres of fuel, based on a standard consumption rate of 0.3 litres per kilowatt-hour.
With fuel costs estimated at around USD 286 per barrel, or roughly USD 1.80 per litre, the replacement power would have cost approximately USD 14.57 million. At the prevailing exchange rate of about Rs. 315 to the US dollar, the bill exceeds Rs. 4.5 billion for April alone.
Energy sector analysts say the figure highlights the enormous economic value of maintaining high availability at coal-fired power plants, particularly at a time when Sri Lanka is seeking to reduce electricity costs and strengthen energy security.
“The financial impact of losing low-cost coal generation is substantial. Every unit not generated by coal has to be replaced by a much more expensive source, usually diesel or fuel oil, which ultimately affects the finances of the power sector and the wider economy,” a senior energy analyst said.
Even under a more conservative calculation, based on the average electricity generation cost of around Rs. 72 per unit recorded in 2025, the loss remains significant. The 27 million units not generated from coal would translate into an additional cost burden of nearly Rs. 2 billion.
The decline in coal generation comes at a critical juncture for Sri Lanka’s energy sector.
The government has repeatedly emphasised the need to maintain affordable electricity tariffs, while reducing dependence on imported fossil fuels and expanding renewable energy capacity.
Experts warn that any sustained reduction in low-cost baseload generation could undermine these objectives, increasing the need for costly thermal power and placing additional pressure on foreign exchange reserves.
The latest figures are expected to intensify scrutiny of generation planning, fuel procurement strategies and the operational performance of major power plants. They also underscore the importance of ensuring uninterrupted operation of coal-fired facilities until sufficient renewable and storage capacity is available to replace them reliably.
With the country striving to maintain economic stability and energy affordability, analysts argue that avoiding such generation shortfalls must remain a top priority for policymakers and power sector planners.
By Ifham Nizam
News
Sallay on hunger strike: Counsel warns CID
Asith Siriwardena Counsel for former Director of State Intelligence Service, Major General (Retd.) Suresh Sallay, detained under the Prevention of Terrorism Act (PTA) over the 2019 Easter Sunday attacks, has called upion the Director of the CID, SSP G. S. Abeysekara, to transfer his client either to a private or government hospital to receive urgently needed teatment.
Sallay was on a hunger strike, claiming mistreatment by the CID, his wife said, after visting him, yesterday.
Siriwardena wrote to the CID Director yesterday (07) after Sallay was visited by his wife, son and brother.
The text of the letter: “The family observed that Mr. Sallay’s physical condition has deteriorated to an alarming and critical level.
“He is reportedly unable to attend the visitation without the physical assistance of two officers. During the visit, he informed his family that he had refused medication, saline, food, and water. He further expressed a belief that his death is imminent and requested that arrangements be made for the donation of his eyes. He also requested an immediate visit from his Attorney for the purpose of executing his last will and other related legal documentation.
“These statements, and circumstances, demonstrate a grave deterioration in his physical and psychological condition. It is apparent that he is no longer capable of making rational decisions concerning his own welfare, health, and survival.
The prolonged conditions, under which he is presently being held have, at the very least, created a serious and immediate risk to his life.
“The State assumes a non-delegable duty of care toward every person held in its custody. Once an individual is deprived of liberty, the responsibility for safeguarding that person’s life, health, and wellbeing rests squarely upon the authorities exercising control over that individual. Any failure to discharge that duty in the face of a known and imminent medical emergency is a matter of the utmost legal seriousness.
“You are hereby formally notified that Mr. Sallay requires immediate medical intervention by qualified independent medical professionals and urgent transfer to an appropriate hospital facility capable of providing comprehensive assessment and treatment. Any delay, refusal, or failure to act despite clear knowledge of his precarious condition may give rise to personal and institutional liability under the criminal and civil law of Sri Lanka
“Should General Sallay suffer irreversible injury or death while remaining in the present conditions despite this explicit warning, it will be open to the relevant authorities, courts, and investigative bodies to examine whether such conduct amounts to a deliberate disregard of a known and foreseeable risk to life. Those responsible for decisions concerning his continued detention and medical care may be required to account personally for their actions and omissions.
“Accordingly, I demand that:
1. Mr. Sallay be transferred forthwith to a government or private hospital equipped to provide urgent medical treatment;
2. He be examined immediately by independent medical specialists, including psychiatric professionals if necessary; His legal representatives and family be granted reasonable access to him;
3. A written update on his medical status and the measures taken for his protection be provided without delay. This letter constitutes formal notice. Any further failure to act despite knowledge of the circumstances set out herein will be relied upon in any future judicial, criminal, constitutional, or international proceedings arising from harm suffered by my client.”
News
Opp. questions why Rs 10 bn meant for Ditwah victims held in Treasury account
The Opposition says the NPP government should explain why the funds received by Rebuilding Sri Lanka haven’t been utilised to provide relief to those affected by Ditwah cyclone in late November last year.
The failure on the part of the government to utilise as much as Rs 10 bn, received from local and foreign donors, came to light when the National Audit Office (NAO) appeared before the Public Finance Commission recently.
The NAO told the House Committee that no statutory fund currently existed under the name “Rebuilding Sri Lanka” and the programme operated through an account maintained under the Deputy Secretary to the Treasury.
The NAO declared that no payments had been made through this account to date.
Former SLPP MP Sanjeewa Edirimanne said that until the disclosure made by the NAO the country had been led to believe the Rebuilding Sri Lanka fund provided post-Ditwah relief. Pointing out that JVP General Secretary Tilvin Silva’s declaration in Jaffna that funds allocated to hold Provincial Council polls
had been utilised to assist Ditwah victims, Edirimanne said such blatant lies were propagated while the government held on to Rs 10 bn meant for the disaster victims.SJB MP Mujibur Rahman questioned the rationale behind keeping funds received specifically for Ditwah victims still living under extremely difficult conditions. (SF)
-
News7 days agoLankan duo emerge winners in Latin dance championship held in Blackpool, UK
-
Latest News5 days agoKusal Mendis, Pathum Nissanka, bowlers put Sri Lanka 1-0 up
-
News5 days agoNew US tariffs proposed on 60 countries, including Sri Lanka
-
News7 days agoSri Lankan teen killed in Chennai clash; three arrested
-
Features4 days agoPower crept into the Sangha and is now tearing it apart
-
Features4 days agoKondachchi wind farm and battery storage project to boost energy security, says Power Ministry Secretary
-
Features4 days agoSaudi Arabia sets new benchmark in Hajj management as 1.7 million pilgrims complete sacred journey
-
News3 days agoAsst. Manager, security officer arrested over Rs 30 mn snatch at Horana PB branch
