• 3-stage relaxation plan aims for minimal reserve impact  
• CBSL assures foreign reserve stability  
• Passenger vehicle imports to resume after commercial phase  
• Govt. confident in economic resilience of policy

The Government has reaffirmed its commitment to relax the ongoing ban on the importation of passenger vehicles by 1 February 2025, expressing confidence that such a move will not adversely impact Sri Lanka’s foreign reserves.

Speaking to The Sunday Morning Business, Department of Trade and Investment Policies Director General M.K Pradeep Kumara confirmed that the Government was confident that the decision to relax the import ban on motor vehicles would not adversely impact the official reserves of the country. 

He added that the Government would therefore be going ahead with the three-stage vehicle import ban relaxation as planned by the previous regime.

“The Central Bank of Sri Lanka (CBSL) has assured us that the decision will not have an impact on our reserves,” he stated.

He pointed out that the first phase of the removal of the import suspension of motor vehicles was effected by President Anura Kumara Dissanayake as the Minister of Finance, Planning, and Economic Development with the publication of the Imports and Exports (Control) Regulations No.14 of 2024 under the Imports and Exports (Control) Act No.1 of 1969 in Gazette Notification No.2415/35 dated 18 December 2024.

Accordingly, under Phase 1, the Government permitted the importation of public passenger transport vehicles, special purpose vehicles, and other non-motorised items with wheels classified under 52 Harmonised System (HS) codes subject to the condition that such imported vehicles would be registered with the Department of Motor Traffic within 90 days from the date of the Bill of Entry/Customs Declaration (CusDec).

Kumara further pointed out that the President had announced that the third phase involving the relaxation of the import ban on passenger vehicles would be implemented on 1 February. 

He also stated that the second phase, i.e. the relaxation of the import ban on commercial vehicles, would be implemented in the period between now and 1 February.  

On 13 September 2024, the Cabinet of Ministers granted approval to remove the temporary suspension of the importation of motor vehicles and a few non-motorised items with wheels, which are classified under 304 HS codes, under three stages, subject to concurrence of the CBSL.