The Sri Lankan government has decided to remove the surcharge of 50% imposed on the import duty on used and modified vehicles from April 1st onwards, which is set to see a reduction in these types of vehicles, officials said.

The government has rescinded a gazette notification issued by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development, to extend a surcharge extended till December 31st.

The gazette notification on surcharge was initially introduced in January 2025, effective until the end of 2025, and then extended until the end of 2026.

Due to the imposition of a surcharge of 50% in recent times, the prices of used and modified vehicles remained high in the local market.

Sources in the motor-importing circles said that with the removal of the surcharge, prices of new vehicles are also expected to see an impact as well.