Central Bank Governor discusses future of vehicle imports in Sri Lanka
January 7, 2025 09:05 am
The Governor of the Central Bank of Sri Lanka (CBSL), Dr. Nandalal Weerasinghe shared his perspective on the future of vehicle imports, during the ‘Derana 360°’ programme last night (6).
Dr. Weerasinghe stated that the Central Bank had conducted an analysis between May and June 2024 to evaluate the necessity of allowing new vehicle imports, particularly as the economy shows signs of improvement.
“We have not permitted new vehicle imports for the past five years. When the economy begins to recover, the country will inevitably require new vehicles. My recommendation is to allow the renewal of vehicle while maintaining the current value of the vehicle market. Individuals wishing to replace their vehicles should be given the opportunity to do so by paying an additional fee,” he explained.
The Governor highlighted the impact of changes in the exchange rate and taxes, such as the 18% VAT, on vehicle prices.
“Allowing the import of a five-year-old vehicle into the market for Rs. 5 million under current conditions would devalue existing vehicles and result in a flood of unnecessary new vehicle imports. To prevent this, a balanced approach is essential. A new vehicle purchase should occur only when necessary, with individuals required to pay a higher amount,” Dr. Weerasinghe emphasized.
