Business

Sri Lanka Lifts Import Restrictions on Motor Vehicles Effective October 1, 2024

Published

2 years ago

2024/09/13

Priyan

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.

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Business

IMF approves USD695 million for Sri Lanka

Published

13 hours ago

2026/05/31

Thilina Walpola

AFP –The International Monetary Fund’s (IMF) board approved two reviews of Sri Lanka’s loan programme, making USD695 million in additional loans immediately available to the island nation.

It is the latest tranche in the country’s four-year USD3 billion bailout, with the Fund warning of further risks due to the economic impact of the Middle East conflict.

Surging oil prices due to the conflict have heavily impacted many import-dependent Asian countries.

“Sri Lanka’s strong implementation under the EFF arrangement has continued despite challenging circumstances,” said the IMF’s Deputy Managing Director and Acting Chair Kenji Okamura.

“Gains from the economic reform programme helped preserve economic resilience and provided room to respond to cyclone Ditwah and the Middle East conflict. The latter, however, has significantly worsened Sri Lanka’s economic outlook and tilted risks to the downside.”

The IMF projects 2026 growth to slow to three per cent, with higher oil prices increasing inflation and weighing on the current account balance.

The board’s approval was contingent on Sri Lanka adjusting certain energy market subsidies issued in the wake of the conflict.

The statement said the Sri Lankan authorities had met the Fund’s requirements on fuel and electricity prices meeting cost-recovery criteria.

Criteria on ensuring no new external debts and on not imposing or intensifying import restrictions “were not observed”, however.

Business

Cambridge College honours students at awards ceremony

Published

13 hours ago

2026/05/31

Thilina Walpola

Guests with an award winner at the certificate and medal awarding ceremony Hindu Cultural Hall in Kandy

The Cambridge College of English Language Training recently held a certificate and medal awarding ceremony to recognize the academic achievements of students who successfully completed Cambridge English examinations.

The ceremony was held at the Hindu Cultural Hall in Kandy with the Vice Chancellor of the University of Peradeniya, Prof. W.M.T. Madhujith, attending as the Chief Guest, while Kandy Mayor Chandrasiri Wijenayake participated as the Guest of Honour.

Founded on March 1, 2024, by English tutor, author and Cambridge TKT lecturer T. Ravichandran, the institution has emerged as a leading centre for Cambridge English examination preparation in Kandy.

Beginning with an initial intake of 30 students, the college has expanded rapidly and currently serves more than 300 students.

The institution’s achievements were further recognized when it received the “Emerging Star Award 2025” at the Annual Coordinators Conference 2025 (South Asia).

The college provides training for students between the ages of seven and 18 across six stages of Cambridge English examinations, including Young Learners English (YLE) Starters, Movers and Flyers, as well as KET, PET and FCE examinations.

Cambridge English qualifications are internationally recognized and are designed to assess language proficiency in line with the Common European Framework of Reference for Languages (CEFR).

The ceremony concluded with the presentation of certificates and medals to students in recognition of their academic performance and commitment.

Text and Pic by SK Samaranayake

Business

ABC Australia, Maharaja Media Network ink MoU to expand Indo-Pacific media collaboration

Published

13 hours ago

2026/05/31

Thilina Walpola

The Australian Broadcasting Corporation (ABC Australia) has signed a Memorandum of Understanding with Sri Lanka’s Maharaja Media Network (MMN), marking a significant expansion of media cooperation aimed at strengthening content exchange, co-productions and professional collaboration across the Indo-Pacific.

The agreement builds on an initial broadcast partnership established in 2022 and an expanded licensing arrangement in 2023, under which ABC programming was made available free-to-air to Sri Lankan audiences through MTV Channel (Private) Limited, part of the Capital Maharaja Group.

Under the new framework, the two organisations will collaborate across television, radio and digital platforms, with a focus on co-produced content, editorial exchange, training opportunities and joint storytelling initiatives.

MMN, Sri Lanka’s largest media network, operates across television, radio, digital media, music and film, including MTV Channel (Private) Limited and MBC Networks (Private) Limited.

Australian High Commission officials described the agreement as a deepening of regional media ties. “This will cover co-production, content sharing and broader cooperation across the Asia-Pacific in telling stories that speak to both countries,” said Matthew Duckworth.

ABC International Head Claire M. Gorman said the partnership reflected a shared commitment to public-interest media and stronger regional storytelling.

Capital Maharaja Group Director Chevaan Daniel said the relationship, which began during Sri Lanka’s economic crisis in 2022, had grown through continued collaboration, including during the 2025 Ditwah cyclone response.