Central Bank Governor Dr. Nandalal Weerasinghe has shared his perspective on the future of vehicle imports in Sri Lanka. Speaking on the popular 360 program aired on TV Derana last night (6th), Dr. Weerasinghe elaborated on the considerations surrounding the issue.
“We conducted an analysis from May to June 2024, which highlighted the necessity of addressing vehicle imports. For the past five years, new vehicle imports have been restricted. As the economy recovers, the country will require new vehicles. My recommendation is to allow vehicle renewal under specific conditions—where individuals replacing their vehicles would pay an additional amount to maintain the current value of the vehicle market,” he said.
Dr. Weerasinghe also emphasized the impact of the exchange rate and tax adjustments. “The exchange rate has shifted significantly compared to previous levels, and VAT has been increased to 18%. If we were to permit the import of five-year-old vehicles valued at around Rs. 5 million, it would severely devalue existing vehicles in the market. This could lead to an unnecessary influx of vehicles into the country,” he cautioned.
To prevent such an imbalance, Dr. Weerasinghe suggested a carefully regulated approach. “Vehicle renewal should occur only when necessary, and those renewing should be required to pay a premium. This ensures a balanced and sustainable process,” he concluded.
