The Sri Lankan national flag.
Credit: Reuters Photo
Colombo: Sri Lanka has finally lifted the import ban on cars, having last week allowed only trucks, buses and double cabs.
Through a new special gazette notification on Friday, President Anura Kumara Dissanayake lifted the ban on vehicle imports with effect from February 1.
This has completely ended the ban on vehicle imports imposed in early 2020 with the Covid outbreak. The ban was continued when Sri Lanka suffered its economic crisis triggered by forex shortage. In April 2022, Sri Lanka declared its first ever debt default.
However, the imports will be subject to a 50 per cent surcharge on the import duties which is expected to push prices of new imports higher.
Dissanayake had earlier announced that $1.2 billion would be reserved for vehicle imports. Sri Lanka is guided by IMF conditions that its forex reserves have to be maintained and built in order to avoid another 2022 type crash of the economy.
With the aid of $2.9 billion IMF bail-out in March 2024, the island’s economy was turned around and the current levels of $6 billion reserves was reached, aided by a stringent austerity measure.