As the government is targeting ambitious fiscal goals for next year, the IMF said vehicle imports could serve as a “very good source of revenue.”

International Monetary Fund (IMF) Senior Mission Chief Peter Breuer noted that the removal of restrictions on vehicle imports has been discussed in this review as well as in previous ones.

“We knew removing restrictions on vehicle imports could be a very good source of revenue for the government in the year ahead. It’s one of the rare opportunities to increase government revenue,” he said.

However, the IMF stressed that this must be managed prudently to avoid undue pressure on the country’s foreign exchange reserves.

In 2025, Sri Lanka is expected to increase government revenue to 15.1 percent of GDP while achieving a 2.3 percent surplus in the primary account. (NF)