Sri Lanka Lifts Vehicle Import Ban Amidst Economic Recovery

Sri Lanka has lifted its vehicle import ban, originally implemented in 2020 to protect foreign exchange reserves amid the COVID-19 pandemic and 2022 economic downturn. Public vehicle imports are now permitted, and private vehicle imports are set to begin in 2025, under strict regulations to preserve foreign reserves.

Sri Lanka is set to lift its vehicle import ban, initially imposed in 2020 to alleviate pressure on its foreign exchange reserves amid the COVID-19 pandemic. According to a government gazette, the importation of public transport vehicles will resume, marking the first such imports allowed since early 2020.

The nation's Ministry of Finance stated that the policy aimed to ease pressure on forex reserves during the economic downturn. President Anura Kumara Dissanayake announced vehicle imports for private use will commence in February 2025, but with regulations to bolster the nation’s reserves.

Vehicle importers are required to sell imports within three months or face a three per cent fee. The importers' association, having lobbied extensively for this change, welcomed the decision. The IMF's conditions for a bailout include building forex reserves, with vehicle imports serving as a potential source of revenue.

(With inputs from agencies.)