Govt. to partially relax vehicle import ban allowing small car imports soon

The government is to lift restrictions of vehicle imports partially allowing the motor traders to bring down small cars with engine capacity of 1000 CC and 1300 CC.

This decision will be taken in accordance with a comprehensive policy and guidelines in vehicle imports soon, a senior Finance Ministry official said.

Measures will be taken to allow motor traders to import some types of vehicles including private cars as the country was losing around Rs.300-Rs 450 billion in import tax revenue per year since March 2020, he said.

The new vehicle importation policy has been devised by a special committee appointed by President Ranil Wickremesinghe.

The new vehicle policy and guidelines will enable to lift the ban on private cars by considering the foreign exchange out flow as a percentage of other imported items, and the general demand for automobiles. 

The Vehicle Importers’ Association said that they are ready to import motor cars following discussions with authorities to formulate new laws or regulations with regard to vehicle importation.

Meanwhile Sri Lanka vehicle spare parts traders complained that the prices of spare parts will increase by Rs 300-600 due to VAT hike of 18 per cent from 15 percent with effect from this month.  (Bandula)