Siyambalapitiya affirms vehicle imports cannot be allowed yet

State Finance Minister Ranjith Siyambalapitiya affirmed yesterday that vehicle imports cannot be allowed yet under the current economic conditions.

He said that the decision to lift import restrictions on vehicles should be taken after an in-depth study of the country’s economic situation.

Noting that the allocation of nearly $ 80 million for fuel purchases had an impact on the value of the rupee against the dollar, the State Minister said that at this juncture, permission cannot be granted to import vehicles.

Explaining the rupee depreciation this week, Siyambalapitiya said the situation was caused by the Ceylon Petroleum Corporation (CPC) purchasing around $ 75-80 million from the market and the Central Bank to procure fuel and the heavy buying of US dollars by parties investing in the foreign currency expecting it to appreciate.

“The situation on exchange rate depends on the demand and supply,” he commented on the rupee depreciation this week, emphasising that it was not unusual.