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LC Opening Statistics (Pre-Gazette vs Post-Gazette)
Comparison of Letters of Credit opened according to official Finance Ministry records.
Primary Sources
JKCG denies prior knowledge of vehicle import surcharge timing
John Keells CG Auto (JKCG) has rejected allegations that it had prior knowledge of a temporary surcharge on imported motor vehicles before its announcement through Gazette Notification No. 2488/56 dated 15 May 2026. In a statement issued on Friday (22), the company said claims that it opened Letters of Credit (LCs) for BYD vehicles immediately before the notification were false. “JKCG categorically rejects this claim and states that the company had no prior knowledge of the surcharge,” it said, adding that no LCs were established for BYD vehicles on the day prior to the Gazette or at any point during May 2026. The company clarified that its most recent orders for BYD vehicles were placed between March and 30 April 2026, and that no further LCs were opened after that period. “JKCG, as a significant player in the motor vehicle market, places orders in the ordinary course of business on a regular basis,” the statement noted. Reaffirming its position, the company said it remains committed to transparency, good governance and compliance with all applicable regulations while continuing to serve customers within the prevailing legal framework. 2026-05-22
Finance Ministry Rejects Claims of 4,000 Vehicle Import LCs Opened ...
The government has dismissed claims that thousands of vehicle importers rushed to open Letters of Credit (LCs) before a new vehicle import tax increase came into effect. The Finance Ministry has rejected claims that 4,000 vehicle import Letters of Credit were opened before the latest import duty surcharge took effect. Speaking in Parliament on Tuesday, Deputy Finance and Planning Minister Anil Jayantha said reports suggesting that 4,000 LCs were opened on May 15 were “completely false.” Instead, he said official records showed that 1,782 vehicle import LCs had been opened before the relevant gazette notification was issued, while 9,429 LCs were opened on May 18 after the new regulations had already been announced. The clarification comes amid growing debate over the government’s decision to impose a 50% surcharge on existing customs import duties for vehicles. The measure, which took effect from May 16 for a period of three months, increases the tax burden on imported vehicles and is expected to raise market prices. Importantly, vehicles for which Letters of Credit were opened on or before May 15 are exempt from the surcharge. The new levy is applied on top of the existing 30% customs import duty, resulting in an estimated increase of around 15% in vehicle prices, according to government calculations. The controversy emerged after former Provincial Council member Niroshan Padukka alleged that around 4,000 LCs had been opened ahead of the tax revision and claimed the activity contributed to pressure on the rupee. The Sri Lanka Vehicle Importers’ Association also called for an immediate investigation into the matter. However, the Finance Ministry maintains that official data does not support the allegations, insisting that the reported figure of 4,000 pre-gazette LCs is inaccurate. Visited 2 times, 2 visit(s) today Finance Ministry Last modified: May 22, 2026
Govt rules out vehicle import ban, rejects claims of surge in LCs
Deputy Finance and Planning Minister Dr. Anil Jayantha Fernando yesterday ruled out any move to suspend vehicle imports and rejected claims of a sharp surge in letters of credit (LCs), saying recent import demand was already moderating following the Government's decision to impose a temporary surcharge on vehicle import duties to ease pressure on foreign exchange reserves. According to the ...
Court Clears Release of Detained BYD Vehicles Following Writ by John ...
John Keells CG Auto (Pvt) Ltd (JKCG), the authorised distributor of BYD vehicles in Sri Lanka, has announced that the Court of Appeal has ordered the release of approximately 1,000 BYD vehicles that were held by Sri Lanka Customs for nearly a month. The release follows a Writ Application filed by JKCG on August 4, 2025, with the court directing the release upon the provision of a bank guarantee.
