Vehicle prices likely to rise after 2026 Budget

The Sri Lanka Vehicle Importers’ Association says that vehicle prices could rise significantly across all categories following the presentation of the 2026 Budget, if the government moves to withdraw existing import duty concessions.

Speaking at a media briefing yesterday (27), Association Chairperson Prasad Manage said that at present, import duties are calculated on 85% of a vehicle’s value, reflecting a 15% exemption currently granted to local vehicle importers.

However, Manage said that information reaching the industry suggests the upcoming Budget 2026 may remove this 15% discount, a move that would directly increase the cost of importing vehicles.

“If this concession is abolished, we will inevitably see a rise in vehicle prices across the board — from small cars to commercial vehicles,” Manage explained, noting that such an adjustment would have a ripple effect on the automotive market and consumer affordability.

He added that while vehicle prices have stabilised in recent months due to market corrections and steady exchange rates, that balance could be disrupted if duty structures are revised in the forthcoming budget.