Govt. to promote electric vehicles in line with renewable energy policy

The government has taken a decision to popularise electric vehicles in Sri Lanka, although the importation of personal vehicles to the country—electric or gasoline—had been completely barred since April 2020 amid the country’s dwindling foreign reserves.

The Government Information Department quoting a research finding by the University of Moratuwa said 60 percent of Sri Lanka’s air pollution is caused by vehicular emissions.

Hence, the Cabinet of Ministers this week approved a resolution furnished by the Environment Minister to prepare a strategic plan to promote electric vehicles usage in Sri Lanka to align with the government’s plans to aggressively pursue renewable energy projects.

In developed countries, promotion of electric vehicles have been done largely through government sponsored subsidies and lower taxes.

Meanwhile, citing the Department of Motor Traffic, the Government Information Department said the number of motor vehicles that have been registered by end of 2020 has exceeded 8 million.

“A considerable portion of those vehicles are older than 10 years and it has been identified that lack of proper maintenance of such old vehicles have lead to poisonous gas emissions,” it added.

About five years ago, the then government slashed import taxes on electric vehicles to promote such environment-friendly vehicles in Sri Lanka. However, the tax policy was short-lived due to the massive revenue drain to State coffers.