Sri Lanka unveils roadmap to ease vehicle import restrictions by 2025: IMF

The International Monetary Fund (IMF) said Sri Lankan authorities have formulated an initial roadmap to ease restrictions on motor vehicle imports by 2025. 

This plan will commence with public passenger and special purpose vehicles in the third quarter of 2024, followed by goods transport vehicles in the fourth quarter of the same year, with the remainder set to follow suit in 2025.

A comprehensive plan detailing the tax implications and effects on reserve accumulations is slated for completion by June 15, 2024. Sri Lanka anticipates generating approximately 0.8 percent of GDP from the relaxation of import restrictions on motor vehicles.

Moreover, Sri Lanka has pledged to devise a plan to eliminate remaining administrative Balance of Payments (BoP) measures, encompassing exchange restrictions, Multiple Currency Practices (MCP) and capital flow measures (CFMs), by the conclusion of May 2024.

The IMF completed the second review under the 48-month Extended Fund Facility (EFF) arrangement, allowing the authorities to draw SDR 254 million (about USD 336 million). This brings the total IMF financial support disbursed so far to SDR 762 million (about USD 01 billion).