On 1st of March 2020, Sri Lanka imposed import restrictions on various goods, including vehicles, due to the economic crisis and a severe shortage of dollars and rupees.
However, the government has decided to lift the ban on vehicle imports, citing improved economic indicators and the need to expand the economy.
The International Monetary Fund has also supported the easing of vehicle import restrictions, recognizing its positive impact on the economy.
Initially, Sri Lanka will allow the importation of commercial vehicles and motor vehicles, excluding cars, with the full process expected to be completed by February 1st.
The cost of newly imported vehicles is expected to increase significantly, with popular models like the Toyota Aqua and Honda Vezel facing higher import taxes of up to 7.5 million rupees.
The Ministry of Finance is expected to clarify the final tax rates and policies before February 1st, with industry officials advising the public to be patient for a clear understanding of the new pricing structure.
