President Anura Kumara Dissanayake has announced that duty-free permits will no longer be issued for vehicle imports.
Speaking on the matter, the President revealed that approximately 20,000 applications for duty-free vehicle imports had been submitted. However, he clarified that this privilege will not be granted moving forward.
He further explained that vehicle prices are expected to rise once imports resume next month.
The President highlighted that vehicle imports were halted for five years, during which the country spent nearly $2 billion on vehicles in 2018 and $1.4 billion in 2019. He also noted the impact of currency fluctuations, stating that when the exchange rate was around Rs. 190 to the US dollar, vehicle prices were lower. With the dollar now nearing Rs. 300, he warned that imported vehicle prices could increase by approximately 40%.
President Dissanayake disclosed that discussions have been held with the Central Bank to determine the allocation of dollars for vehicle imports. He cautioned that if all pending vehicle import applications are processed in February, when the market reopens, it could exert significant pressure on the country’s dollar reserves.
As a result, he emphasized in a television interview that vehicle prices are likely to rise initially due to these factors.