The government is reportedly set to implement a vehicle import policy starting next year, contingent on the level of foreign reserves. This policy is being developed by an expert committee consisting of representatives from the Treasury, Central Bank, President’s Secretariat, and vehicle importers. Final approval is required from President Ranil Wickremesinghe.
One key proposal within the policy is to permit the importation of only two-year-old vehicles, aiming to alleviate strain on foreign reserves, as older vehicles tend to necessitate more spare parts. Additionally, a comprehensive study of necessary vehicle categories will be conducted, and importation will be sanctioned exclusively for those specific categories.
As per reports, the policy is anticipated to prioritize vehicles with small capacities, specifically those ranging from 1000 CC to 1300 CC.
Furthermore, a licensing system for importers is set to be introduced, along with a restriction on the import timeframe, reduced from three to six months. This move aims to curb the sale of vehicles by licensees operating under duty-free schemes.
While Minister of State for Finance Ranjith Siyambalapitiya affirms that the scheme is in the works, he emphasizes that its execution will be contingent on the availability of foreign reserves. However, a senior Treasury official urges caution, highlighting that the recent decision to lift import restrictions, estimated to cost nearly $800 million, may impact foreign reserves.
