President hints at vehicle import resumption; importers warn of possible cost increase

President Ranil Wickremesinghe yesterday hinted at a possible gradual resumption of private vehicle imports starting next year. However, local vehicle importers have warned that this development may not necessarily translate into positive news for buyers. 

While the relaxation could breathe new life into the stagnant motor sector, importers have expressed concerns that duty structures for imported vehicles may see a significant increase.

In January, the government revised the duty structure, resulting in a significant rise in vehicle import costs. Despite the potential allowance for vehicle imports, importers caution that substantial restrictions may remain, implying it is too early to celebrate the statement made by the President.

The Vehicle Importers Association of Sri Lanka’s survey indicates that local market prices are poised to climb alongside the resumption of imports.

In January, the government altered the duty structure which led to a substantial increase in the cost of importing vehicles.

Addressing a gathering organized by the United Youth Union on Tuesday (12) at Taprobane Entertainment, President Wickremesinghe said that he hopes to gradually relax the import of private vehicles starting next year.

The President also said that under the balance of payments, the government has allowed the import of everything other than vehicles.

Initially, the government had decided to grant priority to the promotion of electric vehicles when importing vehicles in the future due to the higher amount of carbon emission from gasoline vehicles and the current air pollution in urban areas.

Later, government approval was granted to implement the scheme to issue permits to import fully electric vehicles, with the objective of encouraging expatriate workers to remit their earnings through legal channels.