Vehicle Import Guide · 2026
Sri Lanka Vehicle Import Duty Guide 2026
Importing a vehicle to Sri Lanka involves one of the highest duty burdens in the world. Understanding the duty structure - Customs Duty, Excise (tiered by engine size), PAL, SSCL and VAT - is essential before committing to a purchase. This guide covers every levy, compares EVs vs petrol cars, and explains how to use FTA savings.
Enter your vehicle specs and CIF value for a full duty breakdown.
Vehicle Import Calculator →The vehicle import duty structure
Vehicle import duty in Sri Lanka is applied in layers. Customs Duty (CID) is fixed at 100% for most passenger vehicles. The variable component is Excise Duty (SPD), which is tiered by engine displacement. All other levies - PAL, SSCL and VAT - are applied at standard rates.
| Vehicle type | Engine | CID | Excise |
|---|---|---|---|
| Petrol / Diesel car | Up to 1000cc | 100% | 0% |
| Petrol / Diesel car | 1000–1500cc | 100% | 50% |
| Petrol / Diesel car | 1500–2000cc | 100% | 65% |
| Petrol / Diesel car | 2000–3000cc | 100% | 75% |
| Petrol / Diesel car | Over 3000cc | 100% | 100% |
| Petrol hybrid | Up to 2000cc | 100% | Reduced tier |
| Electric vehicle (EV) | Any kW | 100% | 0% |
| Motorcycle | Up to 250cc | 30% | - |
PAL (7.5%), SSCL (2.5%) and VAT (18%) apply on top across all categories.
How Excise Duty works on vehicles
Excise Duty (Special Purpose Duty / SPD) is the largest variable component in vehicle import cost. Unlike Customs Duty which is applied on the CIF value directly, Excise is applied on the duty-inclusive base: CIF + CID + PAL + Cess. This means the Excise calculation effectively compounds the earlier levies.
For a petrol car with a CIF value of LKR 3,000,000 and 1500–2000cc engine:
| CIF value | 3,000,000 |
| CID (100%) | 3,000,000 |
| PAL (7.5%) | 225,000 |
| Excise base (CIF + CID + PAL) | 6,225,000 |
| Excise (65% of base) | 4,046,250 |
| SSCL (2.5% of CIF+CID+PAL) | 155,625 |
| VAT (18% of all above) | 2,457,315 |
| Total duties | 9,884,190 |
Total duties = 330% of CIF. Total payable = ~LKR 12.9 million.
Electric vehicles - the duty advantage
Electric vehicles attract 100% Customs Duty - the same as petrol cars. However, they attract 0% Excise Duty. Since Excise is typically the largest component for petrol vehicles, this makes a significant difference.
For the same CIF value of LKR 3,000,000, an EV would pay:
Petrol car (1500–2000cc)
~LKR 12.9M
Total duties: ~330% of CIF
Electric vehicle
~LKR 7.8M
Total duties: ~160% of CIF
The EV saves approximately LKR 5 million in Excise Duty on a comparable vehicle - roughly 40% less total duty. For higher-value EVs, the absolute saving is even greater. Use the Vehicle Import Calculator to compare your specific vehicle.
FTA savings - India ISFTA
Vehicles manufactured in India and exported with a valid ISFTA Certificate of Origin may qualify for a reduced Customs Duty rate under the Indo-Sri Lanka Free Trade Agreement. The ISFTA rate for many vehicle sub-headings is substantially lower than the standard 100%.
The Certificate of Origin must be issued by the relevant Indian authority (DGFT or Export Inspection Agency) and must accompany the shipment. The reduced rate applies only to the CID component - Excise, PAL, SSCL and VAT are still charged at standard rates.
Select "India (ISFTA)" as the origin country in the Vehicle Import Calculator to see whether your specific HS code has an ISFTA rate and what the duty saving would be.
Looking for a specific vehicle HS code?
Browse all 8703 sub-headings in Chapter 87 - cars, EVs, motorcycles, buses and trucks.
Frequently Asked Questions
What is the total cost to import a car to Sri Lanka?▾
The total import cost depends on the vehicle's CIF value, engine size and origin country. For a typical mid-range petrol car (1500–2000cc) from Japan, total duties - Customs Duty (100%) + Excise (65%) + PAL (7.5%) + SSCL (2.5%) + VAT (18%) - typically amount to 300–400% of the CIF value. Use the Vehicle Import Calculator on tariff.lk for an exact figure.
Are electric vehicles cheaper to import than petrol cars?▾
Yes, significantly. EVs attract 100% Customs Duty but 0% Excise Duty, compared to petrol cars which face up to 100% Excise on top of 100% Customs. For a USD 30,000 EV, total duties are roughly LKR 18–20 million. An equivalent petrol car (2000–3000cc) would attract duties of LKR 30–40 million. PAL, SSCL and VAT apply to both at standard rates.
Can I save duty by importing a vehicle from India?▾
India-manufactured vehicles with a valid ISFTA Certificate of Origin can qualify for significantly reduced Customs Duty under the Indo-Sri Lanka Free Trade Agreement. Excise Duty and other levies (PAL, SSCL, VAT) continue to apply at standard rates. Select "India (ISFTA)" in the Vehicle Import Calculator to see the reduced rate.
What documents are required to import a vehicle to Sri Lanka?▾
Required documents include: (1) Bill of Lading / Airway Bill, (2) commercial invoice showing CIF value, (3) packing list, (4) Certificate of Origin (for FTA claims), (5) vehicle registration document from the exporting country, and (6) engine and chassis number certificate. Sri Lanka Customs may also require a vehicle inspection report.
What HS codes cover motor vehicles in Sri Lanka?▾
Motor vehicles for the transport of persons are classified under HS heading 8703 in Chapter 87. The sub-heading depends on fuel type and engine displacement: 8703.21 for petrol up to 1000cc, 8703.22 for 1000–1500cc, 8703.23 for 1500–3000cc, 8703.24 for over 3000cc, and 8703.80 for electric vehicles. Browse all Chapter 87 codes on tariff.lk.
Is there a maximum age limit on imported vehicles?▾
Yes. Sri Lanka restricts the importation of reconditioned vehicles to those not exceeding 3 years from the date of manufacture at the time of importation. Certain categories (passenger buses, trucks) have different age limits. New vehicles do not have an age restriction but must meet applicable standards.