• Special purpose use trucks considered

The Government is considering the removal of import restrictions imposed on passenger transport buses and trucks as the first phase of easing restrictions placed on the import of vehicles in 2020.

Speaking to the media yesterday (13), State Minister of Finance Ranjith Siyambalapitiya said that the Government was currently considering the prompt removal of restrictions imposed on the import of passenger transport buses and trucks used for various purposes.

“There are two types of buses including those that are used to transport local passengers and those used to transport tourists. In addition, there are trucks including those used to transport goods and for special purposes such as garbage disposal and firefighting,” Siyambalapitiya explained.

In June 2023 it had been proposed during a session of the Sectoral Oversight Committee on National Economic and Physical Plans chaired by Government Parliamentarian Mahindananda Aluthgamage that the import of vehicles should be resumed, at least under a credit scheme. There, the Customs officials had pointed out that the expected income could not be reached due to the restrictions imposed on the imports of commodities including vehicles. 

They had also said that about 20% of the Customs revenue comes from the taxes imposed on the import of vehicles, and that the expected revenue could not be reached until the import of vehicles was allowed.

In response to the proposal, Siyambalapitiya said in June that the United States Dollar ($), which had been appreciating by 78% against the Rupee, had been depreciated only by 20% as of then. Noting that the value of the USD which went up to Rs. 360 from Rs. 202 had only come down to Rs. 300 by June, he said that the Government would have to study the proposals to allow the import of vehicles in depth.

The import of many commodities including vehicles were restricted during the period from 2020 to 2023, under the Import and Export Control by the Finance, Economic Stabilisation, and National Policies Ministry, in view of the economic crisis, particularly the shortage of foreign currency reserves, in the country. More commodities were added to the restricted list on several occasions and the Government gradually took steps to lift the restrictions, as the country was recently seeing some progress in terms of the economy.