Vehicle importers await duty structures and Import Controller’s circular to banks

Following govt’s gazette to resume vehicle imports

By Sanath Nanayakkare

Prasad Manage, the President of the Vehicle Importers’ Association of Sri Lanka (VIASL), yesterday said that the registered vehicle importers are eagerly waiting for the government to issue the four-duty structures applicable to vehicle imports as well as the circular to the banks from the Import Controller, following the extraordinary gazette notification regarding the import of vehicles on Jan. 27, 2025, by President Anura Kumara Dissanayake as the Minister of Finance.

The new gazette allows the importation of 25-seater (or more) buses, 10-to-16-seater passenger transport vans, double cab, and lorries.

Manage said that their industry has received the good news that 4 types of vehicles were opened up for importation, for which the duty structures have yet to be issued by the authorities.

“We hope that circular would be issued soon. We also hope that car imports for personal use will be opened up shortly. This will have a progressive impact on the economy of the country,” he said.

He pointed out that the 5-year ban on vehicle imports has had an adverse impact on direct and indirect jobs of the industry.

“The businesses that put up shutters will revive with this move, and it will increase the money circulation in the country. Also, the government will be able to reach its revenue targets as a result of it. The job losses suffered by clearing agents, lorry drivers, car carrier operators, spare parts sellers, garages etc. will also be revived with the move. It will serve as a stimulant to the economy. “he said.

“Importation of vehicles for personal use has not opened yet. We hope as the President said, a gazette would be issued on Feb. 1, regarding that too. Our wish is to enable the consumers buy a good vehicle at a good price for them. However, to get a correct understanding of what prices they could purchase, depends on the duty structures and other things to be announced yet,” he said.

Responding to questions from the media about how the existing prices on old vehicles will behave in the new circumstances, he said,” I can’t exactly say without having the duty structures. From our experience, I would say that chances are the prices of some old vehicles will come down while some will go up.”

“For example, we might be able to import a [double] cab for Rs. 25-26 million. Accordingly, the prices of old cabs may come down. The price of a 15-seater van could go up because the CIF price and the duty on it has gone up. Our objective is to let the consumers buy good vehicles at reduced prices if we get less taxes. We have requested the government to reduce the tax structure a bit. If that is granted, we can bring vehicles at reduced prices,” he said.

He noted that if car imports are allowed by Feb. 1, they can bring the vehicles to Sri Lanka in three weeks.

He mentioned the fact that banks need to receive a circular from the Import Controller to enforce the new gazette notification and open LCs for the four types of vehicles currently allowed.”.

The new gazette, however, has revised vehicle import regulations under Import and Export Control Act. They included: registration requirements with the TIN number, import limits for individuals, penalties for over-importation and re-export regulations if in violation of new regulations.

Sri Lanka’s Cabinet of Ministers had decided to lift all vehicle import restrictions by February 2025, according to a comment made by the then foreign minister Ali Sabry, on September 12, 2024.