Sri Lanka to Resume Vehicle Imports in Phased Manner

Sri Lanka will lift its four-year vehicle import ban in three phases starting October 1, to comply with IMF conditions aimed at economic recovery. The import restrictions were initially imposed during the COVID-19 pandemic to conserve foreign exchange reserves. The phased plan will support public transport, commercial vehicles, and private cars by 2025.

Sri Lanka has announced a phased resumption of vehicle imports starting October 1, following a four-year hiatus imposed to conserve foreign exchange reserves amid an acute economic crisis.

According to the President's Media Division (PMD), the ban will be lifted in three phases, covering public transport, commercial vehicles, and private motor cars, in alignment with the IMF's Extended Fund Facility (EFF) programme aimed at economic recovery.

Significant improvements in forex reserves and the rupee's strength have enabled this decision, which is crucial for government revenue. However, extra customs duties will be introduced to mitigate the pressure on foreign exchange reserves.

(With inputs from agencies.)