Sri Lanka Lifts Ban on Car Imports: A Historic Economic Reform by President Anura Kumara Dissanayake
In a groundbreaking move aimed at revitalizing Sri Lanka’s struggling economy, President Anura Kumara Dissanayake has officially removed the long-standing ban on car imports. This bold decision, marked by the release of a special gazette notification on Friday, has opened a new chapter for Sri Lanka’s economic recovery. The removal of restrictions on car imports is one of the first significant steps toward economic reform after years of turmoil.
Background to the Ban on Car Imports in Sri Lanka
In the wake of the devastating COVID-19 pandemic and the ensuing economic collapse, Sri Lanka was forced to implement a series of austerity measures. One of the most notable was the imposition of a ban on the import of vehicles, including cars, trucks, buses, and double cabs. This decision, which began at the start of 2020, was initially aimed at conserving the country’s dwindling foreign currency reserves and reducing the outflow of foreign exchange.
As a result, Sri Lankans experienced severe shortages of vehicles, leading to higher prices for both new and used cars. The lack of imports in the market had a far-reaching impact on various industries, including transportation, logistics, and tourism, which rely heavily on vehicles. The import restrictions also created an unavailability of spare parts, causing further problems for the nation’s vehicle maintenance and repair sector.
The Move to Lift the Car Import Ban
With Sri Lanka’s economic situation slowly improving, the government, led by President Dissanayake, decided that it was time to ease the restrictions and take steps toward economic recovery. The official lifting of the vehicle import ban comes after a gradual loosening of restrictions on other essential goods, such as trucks, buses, and double cabs, which were allowed entry into the country in the previous week.
The government’s new policy, announced by President Dissanayake, includes a 50% surcharge on import duties for vehicles. While this surcharge is expected to result in higher prices for imported vehicles, it will also help generate much-needed revenue for the government, supporting the ongoing efforts to stabilize the economy. As the country moves forward, this step is seen as an essential part of Sri Lanka’s larger economic recovery plan.
