SriLanka, Aug. 15 -- Vehicle prices are set to rise further following the Government's decision to extend the 50% surcharge imposed on vehicle import duties until December 31, the Vehicle Importers Association of Sri Lanka (VIASL) said.

The surcharge was due to expire today (15), but the Government has extended it for another four months, meaning vehicles imported under Letters of Credit (LCs) opened after May 15 will continue to be subject to the additional duty.

VIASL President Prasad Manage said the extension would result in substantial increases in vehicle prices once newly imported stocks reach showrooms.

He said vehicles currently available at showrooms had been imported under LCs opened before May 15 and are therefore not affect...