The International Monetary Fund (IMF) states that vehicle imports could serve as a “very good revenue source” for the government to achieve its financial targets for the coming year.
Peter Breuer, the head of the IMF senior delegation, mentioned that the removal of restrictions on vehicle imports has been discussed during this review as well as in previous discussions.
“We understand that lifting restrictions on vehicle imports could be an excellent revenue stream for the government in the coming year. It is one of the rare opportunities to increase state revenue,” he said.
However, the IMF emphasized that this should be managed prudently to avoid unnecessary pressure on the country’s foreign exchange reserves.
Sri Lanka aims to raise its state revenue to 15.1% of the Gross Domestic Product (GDP) by 2025.
Going right back to the same pit. Sri Lanka must increase local industries and services for export. Importing is just a temp mechanism for increasing revenue. What about the pressure on our fuel bill when vehicle imports increase. The IMF cannot stress enough the importance of being prudent when opening the market for vehicle imports.