Plans to allow vehicle imports from next year

The government is to introduce a vehicle import policy from next year, depending on the availability of foreign reserves, a senior official said.

An expert committee comprising representatives from the Treasury, the Central Bank, the Presidential Secretariat, and vehicle importers is drawing up a policy, which will have to be approved by President Ranil Wickremesinghe.

Among the proposals to be included in the policy is to allow imports of only two-yearold vehicles, considering that older vehicles require more spare parts and thereby drain out foreign reserves.

smaller-capacity vehicles of 1000 CC and 1300 CC are likely to be given priority in the policy

Also, a study will be allowed on the vehicle categories required, and permission will be granted only for the particular categories.

Accordingly, smaller-capacity vehicles of 1000 CC and 1300 CC are likely to be given priority in the policy.

However, the import period may be restricted to three to six months, while a permit system is to be introduced to the importers.

Restrictions will also be placed on vehicles imported under duty-free schemes by preventing the sale of vehicles by the permit holder.

Finance State Minister Ranjith Siyamabalapitiya told the Sunday Times that the scheme was being drawn up, but it would be tied to the availability of foreign reserves.

However, a senior Treasury official said a cautious decision should be taken as the recent decision to grant permission to lift import restrictions would also have a bearing on the foreign reserves, with an estimated outflow of US$ 800 million.