Sri Lanka to gradually lift vehicle import ban in 2025 to boost revenue

Colombo: Sri Lanka will permit the import of vehicles in stages starting in 2025, as the country seeks to boost revenue through customs duties, President Ranil Wickremesinghe said on Wednesday during a meeting with heads of media organisations.

Wickremesinghe said that the nation's reserves were being built up, allowing for the gradual lifting of the ongoing ban on vehicle imports.

Gross reserves increased to 5.7 billion US dollars at the end of June 2024 from 4.4 billion dollars at the end of December 2023, according to official data, Xinhua news agency reported.

Last week, an IMF delegation to Sri Lanka said that the planned relaxation of import restrictions on motor vehicles will support revenue mobilization in 2025.

Tax administration reforms could further improve compliance, including by establishing a properly functioning VAT refund system for exporters by April 2025, the IMF said.

Earlier, State Minister of Finance Ranjith Siyambalapitiya said the decision on how the import ban will be lifted would be taken in the second week of August.