Vehicle Taxes Could Be Relaxed as Economy Improves, Minister Says

Foreign Affairs Minister Vijitha Herath has indicated that taxes imposed on vehicles could be relaxed in the future, depending on Sri Lanka’s economic conditions.

Speaking at the “Motor Rally 2026” Vehicle Exhibition Parade organised by the Sri Lanka Auto Importers Association (CAIA) on Sunday, the Minister said citizens would have greater opportunities to own vehicles as the government continues to ease import restrictions.

Herath recalled that vehicle imports had been completely suspended just two years ago, leaving no opportunity to import vehicles into the country.

He said the government had managed to resume vehicle imports within a relatively short period, and that Sri Lanka now has the ability to import various types of vehicles under the prevailing system.

The Minister acknowledged that the ongoing conflict in the Middle East had resulted in certain temporary restrictions. However, he stressed that these limitations would be short-term and would eventually be lifted.

Herath also said the resumption of vehicle imports under a restricted system had been made possible by the strengthening of the country’s economy.

He further indicated that as economic conditions improve, the government could consider reducing vehicle-related taxes and creating greater opportunities for the public to purchase vehicles.