Sri Lanka should soften a ban on certain vehicle imports in a sign that the country returns to normal after a serious economic crisis which overthrew a president.
From February 1, imports of bus, trucks and utility vehicles will be allowed to resume, while restrictions on other vehicles should be gradually lifted.
Many Sri Lankans are waiting for the authorities to also abandon an import ban on private cars, public sports service vehicles and three -wheeled trishaw – which are commonly used as taxis.
But with the prices of vehicles forced by a scarcity of new ones to buy, a low currency and high taxes, some request which may afford a new car.
In 2022, Sri Lanka had to face a serious shortage of currencies, which meant that he was unable to comply with his obligations towards creditors for the first time in his history.
The island nation of 22 million people was thrown into the troubles while it was facing shortages of fuel, food and paralyzing medicines.
Massive anti -government demonstrations overthrew the president of the time, Gotabaya Rajapaka, a few months later.
Colombo negotiated a bailout of $ 2.9 billion (2.3 billion pounds sterling) of the International Monetary Fund, while Rajapaka’s successor introduced austerity measures, including hiking taxes and the end of energy grants.
The country’s finances have since improved and the economy is gradually returning from the edge.
The announcement of raising the import ban on vehicles has sparked a buzz among the Sri Lankans who has been waiting for years to buy a new car or a van.
Murtaza Jafeerjee, president of Advocat, an economic reflection group based in Colombo, told the BBC that he thought that the decision was expected for a long time.
“Imports of vehicles will not only increase government revenues, but will also trigger other economic activities such as automotive financing, income from dealers, car and other related activities, creating jobs,” -It declared.
But Nalinda Jayatissa, the country’s Minister of Information, said on Tuesday at a press conference that the country “moved very cautiously because we do not want a wave of imports that will exhaust our foreign reserves”.
The country, which does not have large factories producing cars and trucks, imports almost all its vehicles, including many countries like Japan and India. Now there is also a lot of interest for Chinese cars, especially electric vehicles.
The prices of used cars in Sri Lanka have skyrocketed, some models now cost two or three times more than they did before the ban.
The restrictions have been particularly difficult for people like Gayan Indika, who provides vehicles for weddings and is a part -time taxi driver.
“I want to buy a new car so that I can do my job and resume my private cabin rental. Without a car, without mobility, I lose a lot of my income,” he said.
In a country with poor public transport, a car can be vital, said Sasikumar, a software professional in the central city of Kandy.
“As we do not have a good public transport system, a car is essential to go to other parts of the country. Either the government should raise the ban on cars or improve public transport.”
Sri Lanka imported approximately $ 1.4 billion in vehicles during the year before the ban. This year, the Central Bank says that it planned to allocate to a billion dollars for vehicle imports, but said that money would be gradually published.
Arosha Rodrigo, of the Vehicle Importers Association of Sri Lanka, and his family has run a car dealer for more than four decades.
The company imported approximately 100 vehicles per month before the ban. Since the entry into force of the restrictions, they have not been able to import a single vehicle.
He emphasizes that even if the ban is more relaxed, to allow the import of passenger cars and other vehicles, many people will not be able to afford them due to increased taxes and the small currency of Sri Lanka .
The government has significantly increased the accusation duties on imported vehicles, both new and used, at 200% and 300% depending on the size of the engine.
In addition to excise duties, there is also 18% value added tax (VAT) for any vehicle transported from abroad.
The price of imported vehicles will also be allocated by the weakness of the Sri Lankan Roupie against the world’s main currencies such as the US dollar.
These blatant costs relax people like the school teacher R Yasodha.
“We have been waiting to buy a vehicle for a long time. But if we calculate the tax and the price, the cost of a medium -sized car has doubled by 2.5 million rupees ($ 8,450; £ 6800) at five million Rupes “, she says to the BBC.
“It would cost us a fortune for us.”
