In a significant move, Sri Lanka has announced the lifting of its vehicle import ban, which has been in place for over four years. The decision comes as part of the country’s effort to ease the pressure on its foreign exchange reserves, a situation that was worsened by the economic downturn triggered by the COVID-19 pandemic.
The government’s vehicle import ban was first introduced in 2020, during the height of the pandemic, as a measure to protect Sri Lanka’s foreign reserves. With the country facing an acute economic crisis and a shortage of foreign currency, restrictions were placed on non-essential imports, including vehicles. This decision, while aimed at stabilizing the economy, severely impacted the local automobile market, public transportation, and the general availability of vehicles.
However, on Wednesday, the Sri Lankan government issued a gazette notification allowing the importation of public transport vehicles for the first time since the ban was imposed. The Ministry of Finance explained that the ban was a necessary step to ease the strain on the country’s foreign reserves during the pandemic and the economic downturn that followed in 2022.
This policy shift marks a key step in Sri Lanka’s gradual economic recovery, as the government seeks to balance foreign exchange management with the revival of key sectors such as transportation. The lifting of the vehicle import ban is expected to provide relief to the automobile industry and improve the state of public transport, which has suffered due to the lack of new vehicles.
The decision is seen as a sign of recovery, with hopes for further economic stabilization as the country navigates out of its recent financial challenges.
