Sri Lanka lifts vehicles import ban for first time in four years

Sri Lanka lifts vehicle import ban to boost foreign reserves post-pandemic, with strict rules to prevent excess imports.

Sri Lanka has announced that they will lift the vehicles import ban which was put in place in 2020 to ease the pressure on foreign exchange reserves owing to the COVID-19 pandemic.

By the gazette issued on Wednesday (December 18, 2024) the importation of public transport vehicles have been allowed for the first time since early 2020.

The Ministry of Finance said the policy to ban vehicle imports was implemented with the intention of easing the pressure on foreign exchange reserves owing to the COVID-19 pandemic and the economic downturn of 2022.

President Anura Kumara Dissanayake addressing Parliament on Wednesday (December 18, 2024) said the importing cars for private use will be allowed from February 2025. However, the decision is subject to rules so as to protect the island nation's effort to build foreign reserves.

All importers must sell their imports within three months, if not a three per cent fee would be charged.

“These conditions have been imposed with the intention of safeguarding foreign exchange reserves of the country by way of discouraging importation of an excessive number of vehicles and keeping unnecessary stock of motor vehicles by the importers while spending substantial amounts of foreign exchange," a statement said.

The vehicle importers’ association hailed the move. They had lobbied the government extensively to lift the import ban.