Sri Lanka’s Vehicle Import Ban Partially Lifted: Key Highlights and Regulations

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Breaking: Sri Lanka eases vehicle import ban for four categories. Explore the new guidelines and their implications for businesses.


The Sri Lankan government has made a significant move to ease the long-standing vehicle import ban, but only for specific vehicle categories. This decision, announced through a gazette notification, has sparked mixed reactions among importers, businesses, and the public. Here’s everything you need to know about this crucial update.

Sri Lanka’s Vehicle Import Ban Lifted for Select Categories

The Sri Lankan government has taken a significant step by partially lifting the long-standing vehicle import ban. A new gazette notification outlines the permitted vehicle categories and the conditions under which imports can resume. While this decision has been welcomed by transport and logistics sectors, it has also left some questions unanswered.

What Does the Gazette Allow?

The recently issued gazette allows the importation of only four specific vehicle categories. These include:

  • Over 25-seater buses,
  • Passenger transport vans with 10 to 16 seats,
  • Double cabs, and
  • Lorries.

It’s important to note that this relaxation does not extend to vehicles for personal use, leaving many consumers disappointed.


Role of the Vehicle Importers Association

Addressing the media, Prasad Manage, Chairman of the Vehicle Importers Association, emphasized that while the announcement is a positive step, much remains uncertain. The duty structure for these imports is yet to be finalized, with further guidelines expected in the coming days. This lack of clarity has left importers in a state of limbo.


Finance Ministry’s New Regulations

The regulations, introduced under the Imports and Exports (Control) Act, No. 1 of 1969, were signed by President Anura Kumara Dissanayake. The government aims to facilitate controlled vehicle imports while safeguarding the country’s fragile economy. These measures are part of the Imports and Exports (Control) Regulations No. 01 of 2025.


Timeline of Import Permissions

According to the new guidelines, vehicle imports are permitted between December 18, 2024, and July 31, 2025. Customs clearance will only be granted for vehicles that meet the stipulated criteria, ensuring that importers adhere strictly to the rules.


Re-Export Requirements

Any vehicles imported in violation of the new regulations must be re-exported within 90 days at the importer’s expense. This stringent measure ensures compliance and discourages unauthorized imports.


Import Limits for Individuals

Individuals who are not registered vehicle importers are restricted to importing only one vehicle per year. This limitation is intended to prevent over-importation and support domestic market stability.


Duty Structure and Economic Impact

The government has yet to announce the exact duty structure for these vehicles. However, experts believe it will be designed to balance revenue generation with affordability. The move is expected to stimulate economic activity, especially in the transportation and logistics sectors.


Challenges and Criticisms

Despite the benefits, the decision has drawn criticism for its limited scope. Many stakeholders argue that the exclusion of personal vehicles from the ban lift ignores public demand. Additionally, the lack of clarity regarding duties has added to the uncertainty.


Potential Benefits of the Decision

This policy change is expected to benefit industries reliant on commercial vehicles. Over 25-seater buses and transport vans will address public transportation needs, while lorries and double cabs will support logistics and construction industries.

Sri Lanka’s Vehicle Import Ban Lifted for Select Categories by mlmalaviarachchi on Scribd


The partial lifting of Sri Lanka’s vehicle import ban marks a cautious yet significant move by the government. While the decision has been met with optimism by some sectors, it also highlights the need for more comprehensive reforms. As the country waits for further announcements, this development serves as a stepping stone towards greater economic flexibility.


FAQs

  1. What vehicle categories are allowed for import?
    Over 25-seater buses, 10 to 16-seater vans, double cabs, and lorries.
  2. Are personal vehicles included in the ban lift?
    No, the gazette does not permit the import of personal-use vehicles.
  3. What is the timeline for vehicle imports?
    Imports are allowed between December 18, 2024, and July 31, 2025.
  4. What happens if regulations are violated?
    Non-compliant vehicles must be re-exported within 90 days at the importer’s expense.
  5. When will the duty structure be announced?
    The government is expected to issue guidelines on duty structures soon.
  6. Who signed the regulations for the vehicle import ban lift?President Anura Kumara Dissanayake, in his capacity as the Minister of Finance and Economic Development.
  7. What documents are required for importing vehicles?
    Importers must provide the Taxpayer Identification Number (TIN) and registration details with the Department of Motor Vehicles.
  8. Can unregistered importers import more than one vehicle per year?
    No, unregistered importers are limited to importing only one vehicle per year.
  9. What penalties exist for exceeding import quotas?
    Registered importers who exceed 25% of their approved quota within six months will face a three-year import ban.
  10. How will this decision impact public transportation?
    The import of buses and passenger vans is expected to enhance public transportation infrastructure significantly.