• Total annual value of LCs opened expected to reach 2025 levels
• Vehicle imports likely to be high this year as well
• No specific target for vehicle import LCs set yet

No significant decline has been observed in vehicle imports thus far this year, as the total annual value of Letters of Credit (LCs) opened for vehicle imports is expected to reach levels close to those recorded in 2025, the Deputy Minister of Trade reveals.

Speaking to The Sunday Morning Business, Deputy Minister of Trade, Commerce, and Food Security R.M. Jayawardana stated that, unlike last year, no specific target had been set for the volume of LCs to be opened for the purpose of importing vehicles into the country. 

The Deputy Minister further expressed hope that the market would stabilise and perform under normal conditions.

Jayawardana stated that there had not been a marked decrease in the number of LCs opened for vehicle imports thus far this year. Although import figures have not reached the levels recorded last year, LCs continue to be opened, and as a result, he expects the total number of LCs opened in 2026 to come close to the figures reported in 2025.

“Vehicle imports might be high this year as well. It might not surpass last year’s figure, but it will come close,” he stated.

However, the Deputy Minister opined that the economy was capable of sustaining these levels of vehicle imports without adverse repercussions.

He further confirmed that there were no plans at present to increase existing taxes or introduce new taxes with the objective of curbing vehicle imports.

Speaking to The Sunday Morning Business, Ministry of Trade, Commerce, Food Security, and Co-operative Development Secretary K.A. Vimalenthirarajah similarly confirmed that no specific target had been set for the opening of LCs for vehicle imports.

He further stated that there was an expectation that vehicle imports in 2026 may decline in comparison to 2025, noting that the surge experienced in 2025 was largely attributable to pent-up demand. 

Vimalenthirarajah observed that substantial volumes of vehicles had since accumulated within the country and expressed hope that import demand would moderate in 2026.

However, he clarified that the ultimate outcome would depend on consumer demand, emphasising that the Sri Lankan market was often unpredictable.

“We will have to wait and see. The Sri Lankan market behaviour can be unpredictable at times,” he stated.