Automobiles: After four years, Sri Lanka lifts vehicle import ban

New Delhi: The Sri Lankan government has decided to lift the ban on the import of vehicles from February 2025, the media reported on Thursday.

Four years ago, Colombo prohibited imports of vehicles because of the foreign exchange crisis in the wake of the ongoing COVID-19 pandemic in the world.

Its Ministry of Finance said the policy to ban vehicle imports was implemented to ease the pressure on foreign exchange reserves because of the economic downturn.

President Anura Kumara Dissanayake, addressing the parliament on Wednesday, said the import of cars for private use will be allowed from February 2025.

Vehicle importers had also lobbied the government to lift the import ban.

The IMF bailout conditions dictated that Sri Lanka must build up its forex reserves to prevent a crisis similar to 2022 when the shortage of foreign reserves stopped the import of fuel and essentials.

Now, following some recovery, the global lender has allowed Colombo to resume the import of vehicles to raise revenue via import duty.