Ease Import Restrictions on Vehicles

The government took steps in March 2020 to restrict the import of motor vehicles with the aim of easing the severe pressure on Sri Lanka's foreign exchange rate and protecting the country's foreign reserves.

With the government's decision, the prices of motor vehicles in the local market rose significantly, and the prices of used motor vehicles also increased by over 100%.

Following the implementation of the IMF program and the resulting positive economic situation, the government recently moved to reconsider the ban on motor vehicle imports.

Accordingly, the State Minister of Finance stated that the government is ready to lift the restrictions imposed on public transport as the first phase. He also mentioned that the relevant gazette notification will be issued this week.

However, the State Minister of Finance stated that considering the existing foreign exchange reserves, the import of other vehicles would be further delayed. He further mentioned that financial analysts emphasized that an increase in vehicle imports could lead to a rise in the value of the dollar again.

(Source: Ada Derana, NewsWire)