Business
Sri Lanka Lifts Import Restrictions on Motor Vehicles Effective October 1, 2024
The government has announced the lifting of the temporary suspension on motor vehicle imports, effective October 1, 2024. This decision comes after over four years of stringent import restrictions that were initially imposed to safeguard the country’s foreign exchange reserves during the economic crisis.
The import ban, introduced in March 2020, was aimed at curbing the outflow of foreign exchange amidst the country’s deepening economic troubles. With the ban now lifted, Sri Lanka will begin importing motor vehicles again, starting in stages, as part of a broader economic recovery strategy tied to the Extended Fund Facility (EFF) Programme of the International Monetary Fund (IMF).
Having considered the current economic and environmental factors, the government has decided to make the following proposals for the consideration of the Cabinet of Ministers:
1. The removal of the temporary suspension on the importation of motor vehicles and non-motorized goods, classified under a total of 304 HS Codes, will be done in three stages:
- Stage 1: The importation of public passenger transport vehicles, special purpose vehicles, and other non-motorized goods will be allowed, starting October 1, 2024.
- Stage 2: The temporary suspension on the importation of commercial or goods transportation vehicles will be lifted on December 1, 2024.
- Stage 3: The importation of personal usage motor vehicles (including cars, vans, sports utility vehicles, pickups, etc.) will be permitted starting February 1, 2025.
According to the Cabinet Memorandum, the phased lifting of restrictions is anticipated to inject much-needed energy into the auto industry and the broader economy, addressing challenges like an aging vehicle population, declining fuel efficiency, and rising maintenance costs.
The prolonged import restrictions had left Sri Lanka with an aging fleet of vehicles, characterized by declining roadworthiness and environmental concerns due to poor fuel efficiency. Importation of new vehicles is expected to stimulate economic activity by increasing government revenue, particularly from vehicle imports, which have historically been a significant revenue stream for the country. However, while the reintroduction of imports will put pressure on foreign exchange reserves, measures have been implemented to balance this, including additional duties on motor vehicle imports.
Sri Lanka’s commitment to the Paris Agreement’s Nationally Determined Contributions (NDCs) and its goal to achieve “Net Zero” by 2050 was also a key factor in the government’s decision. The import policy will prioritize environmentally friendly vehicles, with the introduction of stricter emissions standards, shifting from Euro 4 to Euro 6 compliance. The policy will also promote electric vehicles, especially the local assembly of electric three-wheelers, while disallowing the import of petrol or diesel-powered three-wheelers, a category notorious for causing traffic accidents.
In an effort to further reduce road accidents, which average 30,087 per year (primarily caused by motorcycles and three-wheelers), the government has also included safety measures in its import policies.
Starting October 1, 2024, imports of motor cars, sports utility vehicles, motorcycles, and pickups will be limited to those less than three years old. Public passenger and commercial vehicles will be limited to five years, while special purpose and defence vehicles can be up to ten years old. Importers will be required to sell and register vehicles within 90 days of importation, with penalties introduced for any delays.
Furthermore, an annual licensing system will be introduced for importers, manufacturers, and traders to regulate the motor vehicle market and ensure they contribute to the national tax system.
The decision to lift import restrictions marks a new phase in Sri Lanka’s recovery and modernization efforts. While it brings relief to industries and consumers after years of restrictions, the government remains focused on balancing economic growth with environmental sustainability and safety concerns. The phased removal of the suspension is part of a calculated approach to stimulate the economy without compromising the country’s foreign exchange reserves or its commitments to climate change mitigation.
By Sanath Nanayakkare
Continuing its mission to drive inclusive economic recovery and empower Sri Lanka’s grassroots business sector, the Commercial Bank of Ceylon PLC has actively accelerated the disbursement of the Asian Development Bank’s (ADB) Enhancing Small and Medium-Sized Enterprises Finance Project line of credit.
As Sri Lanka’s premier private sector lender, Commercial Bank drives regional development by bridging financial gaps outside the Western Province. Jaffna and the broader Northern Province remain pivotal focus areas due to their immense potential for industrial regeneration, vibrant agricultural output, and entrepreneurial resilience in the post-crisis economic landscape.
Directing targeted, affordable financing enables local enterprises to overcome historical financing barriers, expand production capacity, and stimulate employment across regional supply chains.
Quality at the Source: ADB Country Director Shannon Cowlin inspects a bottle of premium sesame oil at the New V.S.P. Gingelly Oil factory floor in Jaffna. Working capital facilities extended through Commercial Bank under the ADB line of credit enable manufacturers like Harish Industries to meet growing wholesale and retail demand across Sri Lanka while securing long-term economic resilience.
The dedicated credit scheme offers affordable interest rates to help small and medium-sized enterprises (SMEs) rebound from recent macroeconomic shocks, maintain employment stability, and build long-term sustainability. Designed to target underserved segments, the funding line prioritizes viable enterprises located outside the Colombo district, women-owned and women-led businesses, and ventures incorporating strong climate finance components. Eligible sectors span manufacturing, agriculture, animal husbandry, technology, tourism, and direct export industries.
A standout beneficiary showcasing the transformative impact of this regional focus is Harish Industries, a flourishing manufacturing firm located within the purview of Commercial Bank’s Manipay branch in Jaffna. Owned and operated by proprietor Ponnuchamy Prabakaran, Harish Industries manufactures premium sesame oil under the popular brand name “New VSP Gingelly Oil”.
The working capital facility extended by the line of credit to Harish Industries helped to cater to short-term liquidity needs, ease out cash flow pressure, and operate the business in a sustainable manner.
Additionally, this financial backing helped create more employment opportunities, strengthen its supply chain, and expand business operations to meet growing wholesale and retail demand across Sri Lanka.
by Sanath Nanayakkare
True corporate leadership extends far beyond financial metrics and market dominance. For the Commercial Bank of Ceylon – recognised as Sri Lanka’s top-ranked bank in the 2026 edition of The Banker’s Top 1000 World Banks and the country’s first 100% carbon-neutral bank—true progress means investing directly in the nation’s ecological health.
On 19 September, the Bank demonstrated how a massive institutional infrastructure can be mobilised for the greater good.
Marking International Coastal Cleanup Day 2026 under its “Forward Together for a Cleaner Future” platform, the Bank brought together employees, corporate management, customers, and volunteers for a coordinated national conservation initiative spanning 20 locations.
What sets this effort apart is its deliberate breadth. The campaign moved far beyond a conventional beach cleanup by integrating 16 coastal sites – including prominent Colombo locations like Mount Lavinia, Wellawatte, and Galle Face, alongside regional spots from Point Pedro to Dondra – with four vital inland waterways, such as the Mahaweli River at Polgolla Dam and Parakrama Samudraya. This structural reach ensured that even inland communities could actively participate in a unified national environmental mission.
This massive undertaking was anchored by robust partnerships, working alongside the Marine Environment Protection Authority (MEPA) as the technical partner and the United Nations Global Compact (UNGC) Network Sri Lanka. By translating its formal 2025 adoption of Sustainable Development Goal 6 (Clean Water and Sanitation) and its role as a UNGC Patron into boots-on-the-ground volunteerism, the Bank bridged high-level environmental policy with grassroots action.
Ultimately, Commercial Bank’s nationwide mobilisation proves that when a premier financial institution harnesses its expansive network, corporate responsibility stops being a theoretical framework and becomes a tangible, community-driven force for a cleaner future.
The grand halls of the Taj Samudra in Colombo buzzed with a distinct energy on the morning of September 25, 2026, as leaders gathered for the National Celebration of World Tourism Day.
Yet, beneath the formal discussions on digital agendas and artificial intelligence, a deeper, more vibrant narrative was quietly unfolding. This was not merely a story of algorithms and automated efficiency; it was a human story – a tale of Sri Lanka’s youth stepping forward to redesign the future of hospitality.
For generations, Sri Lanka’s allure has been rooted in its timeless landscapes, golden shores, and the legendary warmth of its people. But as global travel evolves, a new generation of tech-savvy local innovators is finding ways to weave cutting-edge technology into the rich tapestry of Sri Lankan culture. This shift took center stage during the Tourism Start-Up Competition 2026, held under the theme “AI-Driven Innovation for the Future of Tourism”.
Out of 52 competitive applications spanning tertiary and commercial levels, young minds proved that technology and tradition can go hand in hand.
The twenty-five shortlisted teams stood before expert panels to defend visions that bridge the gap between ancient heritage and modern data intelligence.
Behind every submitted AI solution was a young entrepreneur eager to protect local destinations, enhance visitor experiences, and elevate service delivery.
When the twelve winners were finally honoured, the celebration transformed into something much greater than an awards ceremony.
It served as a powerful reminder that the true engine of Sri Lanka’s digital transformation is its youth. Armed with code, creativity, and a profound love for their country, these young visionaries are ensuring that when travelers explore Sri Lanka, they do not just witness the future – they feel the heartbeat of a new, digitally empowered era of hospitality.
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