Vehicle prices are expected to increase substantially from May 2 due to the increase of the VAT, Chairman of Vehicle Importers Association Indika Sampath Merinchige said.

Although it is still not clear as to how much the increase will be, prices will be definitely increased, he said.

Meanwhile, he added that there was an uncertainty in the local automobile market. This is due to the weakening of the rupee compared to the US Dollar and the situation in Japan, he added.

A prospective buyer should try to buy a vehicle already in Sri Lankan market he added.

The government has announced that the VAT will be increased to 15 percent with effect from May 2.