How to Calculate Landing Cost in Sri Lanka

A comprehensive guide to calculating the total landing cost of an imported vehicle in Sri Lanka. Learn about CIF value, Excise Duty, Luxury Tax, VAT, and other charges with clear examples.

How to Calculate the Total Cost of an Imported Vehicle in Sri Lanka

The total cost of an imported vehicle in Sri Lanka, referred to as the “Landing Cost,” is the sum of its CIF Value and all applicable taxes and fees imposed by the Sri Lankan Customs Department.

Key Components of the Landing Cost

01.CIF Value (Cost, Insurance, and Freight) This is the base value of the vehicle and includes

  • Cost – The purchase price of the vehicle from the foreign supplier. 
  • Insurance – The cost of insuring the vehicle during shipment.
  • Freight – The shipping cost to transport the vehicle to Sri Lanka.

All taxes are calculated based on this CIF value.

02.Types of Taxes and Levies The main taxes and fees you need to pay include

  • Excise Duty – Calculated based on engine capacity (cc) for petrol, diesel, and hybrid vehicles, or motor power (kW) for pure electric and series hybrid vehicles.
  • Luxury Tax – A high-rate tax applied to the portion of the CIF value that exceeds a specific threshold, which varies by vehicle type.
  • Customs Duty – A standard rate of 20% applied to the CIF value.
  • Surcharge Duty – 50% of the Customs Duty, which effectively amounts to 10% of the CIF value.
  • Vehicle Entitlement Levy (VEL) – A fixed fee of LKR 15,000.
  • Export Management Fee (EXM) – A fixed fee of LKR 1,750.
  • Value Added Tax (VAT) – 18% applied to the cumulative total of (CIF + Excise Duty + Luxury Tax + Customs Duty + Surcharge Duty + VEL + EXM).
This breakdown should make it easier to understand the components involved in calculating the landing cost of an imported vehicle in Sri Lanka.