President Anura Kumara Dissanayake has announced that new vehicle imports to Sri Lanka will come at a higher price compared to the current second-hand vehicles, due to controlled measures aimed at stabilizing the economy and protecting financial institutions.
Speaking at Sirasa Satana, the President emphasized the need for a balanced approach to vehicle imports, warning that a significant drop in second-hand vehicle prices could have severe repercussions on banks and leasing companies, potentially leading to a financial crisis.
To manage foreign exchange reserves effectively, the government plans to allocate $1.2 billion for vehicle imports in 2025. In comparison, Sri Lanka spent $1.9 billion on vehicle imports in 2018 and $1.4 billion in 2019.
The President stressed the importance of maintaining limits on vehicle imports to prevent depletion of foreign reserves, which could trigger another economic crisis.
“Unregulated imports could drain our foreign reserves entirely. We must ensure imports are distributed throughout the year rather than concentrated in February, which could lead to a severe dollar outflow,” President Dissanayake stated.
The government is set to reintroduce vehicle imports in February 2025, but strict controls will be in place to prevent a sudden influx.
The President further explained that these measures, along with limited import volumes, would result in higher prices for new vehicles compared to second-hand alternatives.
The President also confirmed that vehicles will not be allowed to be imported using permits that have been issued. (NewsWire)