Government will not reduce vehicle taxes in 2025, according to Duminda Hulangamuwa, economic advisor to President Anura Kumara Dissanayake.

Speaking on Sri Lanka's television on 24th March, Hulangamuwa stated that individuals anticipating a reduction in vehicle duties should not expect any changes within 2025.

Sri Lanka imposes high taxes on cars, motorcycles, and three-wheelers as a revenue-generating measure. In 2024, these taxes were increased to "save foreign reserves."

The country enforces multiple economic controls, including exchange controls, due to foreign exchange shortages resulting from central bank money printing aimed at reducing interest rates.

In 2025, an additional import duty was imposed on cars, which, according to critics, may lead to leakages into the vehicle assembly sector.