Vehicle Import CID Surcharge Extended Until 31 December 2026

The 50% surcharge on Customs Import Duty (CID) for specified motor vehicles has been extended until 31 December 2026 under the latest notification dated 13 August 2026.

The base CID on the relevant vehicles is currently 30%. Therefore, the surcharge increases the CID as follows:

• Base CID: 30%
• 50% surcharge on CID: 15%
• Effective CID: 45%

This means the CID surcharge, which was initially reintroduced for a short period from May 2026, will now continue until the end of the year.

Important point for L/C-based imports

Vehicles imported under an L/C opened on or before 15 May 2026 may qualify for transitional relief. However, the latest notification imposes further conditions.

In particular, the relevant vehicle should generally be shipped on board on or before 15 November 2026, based on the date shown in the Bill of Lading or Airway Bill. If the vehicle is shipped after this date, the 50% CID surcharge may apply even where the L/C was opened before 15 May 2026.

Key takeaway

The practical position is that the CID on relevant vehicle imports remains 45% until 31 December 2026, subject to the specified transitional relief and Customs documentation requirements.

SSCL, VAT, PAL, CESS and other applicable import taxes are charged separately.

Sri Lanka resumed the importation of motor vehicles from 1 February 2025, subject to the applicable import-control framework. From that point, the Customs Import Duty (CID) on vehicles has changed several times through the introduction, removal and reintroduction of a 50% CID surcharge, as well as an increase in the base duty rate.

Summary of Changes