- Decision only after assessing impact of lifting ban on certain categories of vehicles on foreign reserves
Even though the Government has issued an extraordinary gazette notification regarding vehicle imports, no decision has yet been made on lifting the import bans on certain other personal vehicles, such as motorcycles.
These remarks were made by Cabinet Spokesperson Minister Dr. Nalinda Jayatissa during the weekly Cabinet media briefing held yesterday (28). The extraordinary gazette was issued by President Anura Kumara Dissanayake, under the powers vested in him as the Minister of Finance, Planning, and Economic Development, on Monday (27).
Elaborating further, Minister Dr. Jayatissa noted that the Government is particularly concerned about personal motor vehicles, as they are likely to place additional pressure on foreign reserves. He added that decisions regarding other vehicles would be taken after assessing the impact of lifting the current import ban on the country’s foreign reserves.
“This decision comes after five years. Therefore, we are being very cautious about our foreign reserves and public revenue,” he stated. He also remarked that a rapid removal of the import ban for all vehicles could negatively impact the economy. However, he assured that the Ministry of Finance has thoroughly studied the potential effects of this decision on the foreign reserves and the tax revenue.
“We announced three categories and timelines. Vehicle importers are aware of this. We are making these decisions systematically. No discussions have taken place yet regarding the other categories and the ministry has assessed the foreign reserves spent on all three categories,” he explained.
Dr. Jayatissa further mentioned that ministry officials had multiple discussions with vehicle importers on various matters, including tax rates, before arriving at the decision. He added that vehicle importers are however welcome to continue discussions with the ministry for further clarification.
The extraordinary gazette, issued under the authority granted to the Finance Minister by Section 20, read in conjunction with Sub-Section 4(1) and Section 14 of the Imports and Exports (Control) Act, No. 1 of 1969, as amended by Act, No. 48 of 1985 and Act, No. 28 of 1987, outlines the regulations governing vehicle imports.
Accordingly, the Director General of Customs has been authorised to release any goods imported based on a letter of credit established during the period of 18 December of last year (2024), to Monday (27), under the provisions of the Imports and Exports (Control) Regulations, No. 14 of 2024, referred to in Regulation, No. 4. These goods must have arrived at any port or airport in Sri Lanka between 18 December 2024, and 31 July 2025.