Govt. extends timeline on electric vehicles import scheme for migrant workers

By Charumini de Silva

The Government has decided to further extend the timeline issued to allow Sri Lankans working abroad to import electric vehicles; four-wheeler or two-wheeler, to incentivise remitting money via formal channels. “Expatriates will now be allowed to import electric vehicles for all remittances effective from 1 May 2022 to 31 December 2023,” Cabinet Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.



Previously, the timeline eligible to import two-wheeler electric vehicles for expatriate workers who remitted over $ 3,000 was from 1 May to 30 April 2023, whilst those who have remitted over $ 20,000 from 1 May to 31 December 2022 were permitted to import a vehicle equivalent to 50% of remittances transmitted via the formal banking system.

On 1 August, the Government decided to introduce a fresh scheme to allow Sri Lankan migrant workers who have remitted $ 20,000 to a maximum of $ 65,000. Thereafter, on 31 August, the Government issued the circular on the electric vehicles import scheme, citing that it will be eligible for money transmitted from May 2022 to December 2022.

The objective of the Government move was to boost foreign exchange inflows via the banking system, to overcome the ongoing foreign exchange crisis and to appreciate the contribution made to the national economy by expatriates to reduce foreign currency scarcity.

As per the circular issued on 5 September, those who had remitted over $ 3,000 from 1 May to 30 April 2023 are eligible to import an electric motorcycle equivalent to 50% of remittances transmitted via the formal banking system, whilst expatriates who have remitted over $ 20,000 from 1 May to 31 December 2022, are allowed to import a four-wheel or two-wheeler electric vehicle.

“The Cabinet Ministers meeting on Tuesday approved the import of a two-wheel electric vehicle with a CIF value up to 50% from the foreign exchange value remitted up to either 30 April 2023 or up to the date an application is submitted for the import of a vehicle.

“It was also approved to import a four-wheel electric vehicle with the CIF value up to 50% from the foreign exchange value remitted from 1 May 2022 to 31 December 2023 to Sri Lanka,” he explained.

The proposal to this effect submitted by Labour and Foreign Employment Minister Manusha Nanayakkara was approved by the Cabinet Ministers.

The Government decided to restrict vehicle imports from 2020, given the foreign exchange crisis and the license to import these electric vehicles will be issued ‘only’ to migrant workers who send money legally through the banking system.

After publishing the Gazette on Import and Export Control Regulations on 23 September, several expatriate workers raised concerns about the legalities of the importation of electric vehicles. Thereafter, the Cabinet Ministers at its meeting on 11 October cleared to submit regulations for Parliamentary approval for a Gazette issued in September allowing expatriate workers to import electric vehicles.

“We have observed that a few people have already imported vehicles after sending their money through official channels, whilst some are still unsure whether or not to import and whether the regulations are in place officially,” he explained the rationale to submit the proposal to the Parliament.

Noting that such a scheme was introduced in Sri Lanka for the first time, the Cabinet Spokesman commended the efforts taken by Minister Nanayakkara to implement the two measures to further boost foreign exchange inflows and to recognise the contribution of the migrant workers to the economic development.