Deputy Minister of Finance and Planning Anil Jayantha Fernando told Parliament that the Government’s recent measures to control vehicle imports have successfully reduced daily import expenditure.
He said average daily spending on vehicle imports has dropped from around US$ 5.27 million to approximately US$ 3.9 million following the introduction of new restrictions.
At one point, vehicle imports had surged to US$ 6.8 million per day, driven by public concern over possible restrictions, which placed additional pressure on the country’s foreign exchange reserves.
Addressing Parliament, the Deputy Minister noted that the ongoing conflict in the Middle East has had a wider impact on Sri Lanka’s economy, particularly through rising fuel costs and exchange rate pressures.
He said the economic shock from the conflict has affected multiple sectors, adding that fuel remains the most significant challenge at present.
While expressing hope that the situation would stabilise, he warned that continued escalation could require closer monitoring and stronger policy responses.
Fernando also explained that pressure on the US dollar has contributed to rising import prices, although the Government has implemented measures to reduce the overall impact.
He said vehicle imports, along with fuel imports, were key contributors to foreign exchange outflows, but fuel imports could not be significantly reduced due to essential demand.
The Deputy Minister said the Government had urged the public to limit non-essential vehicle imports and introduced mechanisms to manage import demand more effectively.
He added that these measures are now beginning to show results, with expenditure on vehicle imports falling significantly in recent weeks.
According to him, total vehicle import spending for the first eight working days up to June 10 stood at US$ 31.72 million, averaging about US$ 3.9 million per day.
Fernando said the current level of imports is even lower than initially projected, reflecting the impact of the Government’s intervention in stabilising external sector pressures.
