Govt. to reintroduce vehicle imports in phased manner: Deputy Minister

Thursday, 28 November 2024 04:43 - - {{hitsCtrl.values.hits}}

Economic Development Deputy Minister Prof. Anil Jayantha Fernando on Tuesday revealed that the Government will open up vehicle imports in a phased manner which has already been outlined, citing that economic stability remains a key priority.

Responding to journalists at the post-Cabinet meeting media briefing, he said the vehicle imports will be regulated within the framework of foreign exchange limitations with due consideration of the country’s reserve levels.

“At present the foreign reserves have reached a level of $ 6.4 billion, and additional buffers have been established by the Central Bank,” he pointed out.

Prof. Fernando also said vehicle importation will be executed in three phases, prioritising essential categories and adhering to the foreign exchange limitations.

The import ban on vehicles introduced in March 2020 was aimed at curbing the outflow of foreign exchange amidst the country’s deepening economic crisis.

In September, the previous regime announced that it has decided to lift the temporary suspension on motor vehicle imports, effective 1 October 2024. In a statement issued by the then Government, it noted that Sri Lanka will begin importing motor vehicles again, starting in stages, as part of a broader economic recovery strategy tied to the Extended Fund Facility (EFF) Program of the International Monetary Fund (IMF).

IMF Senior Mission Chief for Sri Lanka Peter Breuer last week said that removal of restrictions on vehicle imports was discussed in the third review as well as in previous reviews.

He said that removing restrictions on vehicle imports could be a very good source of revenue for the State coffers in the year ahead.

However, Breuer stressed that this must be managed prudently to avoid any undue pressure on the country’s foreign reserves.

The prolonged import restrictions had left Sri Lanka with an aging fleet of vehicles, characterised by declining roadworthiness and environmental concerns due to poor fuel efficiency.