Import Duties on Motor Vehicles in Sri Lanka Increased Largely

A senior official with the Ministry of Finance of Sri Lanka recently indicated that since June 2010 when the Sri Lankan Government reduced the import duties on motor vehicles, the import duty revenue on vehicles collected by the Government realized a great increase.

In July 2010, the Sri Lankan Government received revenue on motor vehicles of RUPEE 1.7 billion, up 240% compared with RUPEE 500 million in May 2010.

The Sri Lankan Government hopes to reduce the prices of imported motor vehicles by lowering their import duties so as to stimulate the purchase and increase duty revenue.