Sri Lanka to Lift Vehicle Import Restrictions in Phases by 2025

Sri Lanka will lift restrictions on vehicle imports in phases, starting October 1, 2024. The decision aims to restore economic normalcy and stimulate government revenue. The phased approach aligns with the IMF's economic recovery strategy and aims to manage the impact on foreign exchange reserves.

Sri Lanka will lift the restrictions on the import of all vehicles in a phased-out manner by February next year, as part of the island nation's efforts to 'restore normalcy in the economy', according to an official release. The ban would be lifted from October 1 in three phases, tied to the Extended Fund Facility (EFF) Programme of the IMF, an official statement by President Ranil Wickremesinghe's office said on Friday.

The Cabinet approval to allow motor vehicle imports comes after four years of 'stringent import restrictions' imposed to conserve the island nation's foreign exchange reserves during an acute economic crisis, the President's Media Division said.

'With the significant improvement in forex reserves and the strength of the rupee, the Cabinet of Ministers has decided to lift all vehicle import ban/restrictions by February 2025. This decision is part of our ongoing efforts to restore normalcy in the economy and meet the needs of our people,' Foreign Minister Ali Sabry stated in a post on X.