Sri Lanka, Sept. 3 -- Sri Lanka's vehicle market is entering another period of price pressure, with the cost of several models jumping by hundreds of thousands of rupees - and in some cases by several million - as the effects of higher import duties begin to reach buyers.

The latest increases follow the Government's decision to extend the 50% surcharge on vehicle import duties until December 31. While the impact has been relatively limited on vehicles already in showrooms, the situation is changing as newer consignments face the increased duty.

For buyers, the difference is already substantial.

Prices of some of the country's more popular models have moved up by around Rs. 500,000 to Rs. 900,000. A Suzuki Wagon R is now about Rs. 500,0...