The Central Bank of Sri Lanka has revealed that expenditure on vehicle imports has risen to nearly US$3 billion following the removal of vehicle import restrictions.
Vehicle import expenditure amounted to US$2.04 billion in 2025, while expenditure during the first quarter of this year alone has reached US$613 million. Vehicle imports had been suspended after 2019.
More than US$2 billion was spent on vehicle imports in both 2015 and 2018.
The government gradually relaxed restrictions on motor vehicle imports, and by January last year (2025), all remaining restrictions on private vehicles had been removed.
However, the government’s attention has now turned towards vehicle imports due to the rapid appreciation of the United States dollar against the Sri Lankan rupee.
President Anura Kumara Dissanayake recently issued a warning at a District Coordination Committee meeting held in Kandy that restrictions on vehicle imports may have to be reintroduced.
According to information released by the Central Bank of Sri Lanka, the selling rate of the United States dollar had risen to Rs. 331.1572 by last Friday (15).
Meanwhile, the buying rate stood at Rs. 323.5345. Accordingly, the value of the US dollar against the Sri Lankan rupee continues to rise rapidly.
According to Central Bank data, the Sri Lankan rupee depreciated by 3.6% against the US dollar during the period from 1 January 2026 to 8 May 2026.
Economic analysts state that global uncertainty has contributed to the strengthening of the dollar and the weakening of other currencies. Governor of the Central Bank, Dr Nandalal Weerasinghe, recently stated at a Central Bank event that Sri Lanka’s exchange rate had come under pressure due to external shocks.
Government sources state that the Ministry of Finance is scheduled to discuss this week whether vehicle imports should continue under the current conditions.
Meanwhile, vehicle importers state that vehicle prices could rise by around 10% in the coming weeks due to factors including changes to the calculation of the Social Security Levy on imported vehicles and the appreciation of the US dollar.
Accordingly, importers say the price of a Toyota Raize currently priced at around Rs. 14 million could increase by between Rs. 800,000 and Rs. 1 million, while a Toyota Yaris could rise by between Rs. 400,000 and Rs. 500,000.
They further state that the price of a Honda Vezel could increase by around Rs. 1.2 million, while a Toyota Land Cruiser could rise by approximately Rs. 3 million.
It is also reported that nearly 10,000 imported vehicles are currently stationed within the premises of the Hambantota International Port.
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