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Vehicle importers to submit import quota this week

15 Mar 2021

By Zahida Rizvi   Vehicle importers are planning to submit, this week, 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. Speaking to The Morning Business, Vehicle Importers’ Association of Sri Lanka (VIASL) President Sampath Merenchige told us that the organisation is in the final stages of discussions with its members in finalising the quota. “The proposal consists of the mechanism of registering its members, sharing the quota, and the request for exporters to deposit money,” he said. Merenchige further pointed out that the Association looks forward to discussing the management of the monopoly in the industry, and implementing a mechanism to put an end to it and ensure that businesses can survive. The Government imposed a ban on vehicle imports last year, due to currency depreciation and a steady depletion of forex reserves. Accordingly, the VIASL was asked to draft a plan that will not put pressure on the currency. According to the VIASL, 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. Although the initial ban on vehicle imports was imposed only as a short-term measure, State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal declared last month that Sri Lanka’s ban on vehicle imports will remain in place until end-2021. He added that the decision to impose the import ban on vehicles will be reviewed by the end of this year.  In 2019, Sri Lanka spent about $ 815.7 million on vehicle imports, compared to $ 1.5 billion the previous year. In August, the Central Bank of Sri Lanka (CBSL) stated that expenditure on motor vehicle imports declined by 80.9% due to the import restriction measures taken by the Government and the CBSL since March 2020.   


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