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Environment Minister urges Govt. to import green vehicles

24 Mar 2021

  • Says year-end import ban review should focus on promoting EVs

  • Decreasing air quality highlights need for cleaner fuel use

  As Sri Lanka has announced the ban on vehicle imports is to be extended until end-2021, Environment Minister Mahinda Amaraweera, speaking at a press briefing, requested the Government to consider importing solar-powered or electric vehicles (EVs) after the review of the vehicle import ban, due at the end of this year. The Central Environmental Authority (CEA) further addressed concerns on air quality levels dropping in Colombo and Kandy districts, with around 150-160 micrograms of microparticles per cubic metre in the atmosphere. Amaraweera emphasised that this level far exceeds the World Health Organisation (WHO) benchmark, of 50 micrograms of microparticles per cubic metre. In the 2018 National Budget proposal, the Government took positive steps to promote the electric car segment, while discouraging vehicles with Internal Combustion Engines (ICEs) that run on fossil fuels. The Government has also claimed that all government-owned vehicle fleets will be shifting to full electric or hybrid systems by 2025. Meanwhile, neighbouring India has declared it will offer fresh incentives to companies making electric vehicles (EVs), as part of a broad auto sector scheme through which it expects to attract $ 14 billion of investment over five years, according to industry sources and a document seen by Reuters. The new automotive sector scheme, however, has been under discussion since mid-2020, to provide a more focused approach, industry sources close to the matter told Reuters. The plans envisage $ 8 billion of incentives for carmakers and suppliers over a five-year period to drive large investment in the sector. The automotive incentive scheme is part of India's broader $ 27 billion programme to attract manufacturers like China and Vietnam, to capture a bigger share of the global supply chain and exports. Sri Lanka introduced a green energy policy named “Soorya Bala Sangramaya”, which laid out opportunities to promote solar energy through various subsidies and soft-loan schemes.  In addition, vehicle importers had submitted a quota for vehicles to be imported to Sri Lanka, following a Government directive requesting that they do so while considering the need to save foreign exchange reserves. According to the Sri Lankan Vehicle Importers' Association, there is an urgent need to take a concrete decision regarding the resumption of vehicle imports, as vehicle importers as well as customers have been greatly inconvenienced due to declining vehicle stocks, and also the consequent vehicle price hikes.


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