Sri Lanka Lifts Import Ban on Trucks, Heavy Vehicles

COLOMBO (Reuters) – Sri Lanka on Tuesday lifted a ban on imports of vehicles and different heavy automobiles for the primary time since March 2020, in keeping with a gazette notification.

Sri Lanka has been regularly easing import restrictions, which had been imposed because the nation’s financial system tottered from a monetary disaster attributable to a extreme scarcity of {dollars}.

This, nonetheless, is the primary time it has rolled again some restrictions on automobiles that had been imposed in March 2020.

Heavy automobiles together with buses, vehicles and tankers can now be imported, in keeping with a authorities notification issued by President Ranil Wickremesinghe, who can be the finance minister.

Nonetheless, import bans on passenger automobiles together with vehicles will stay in place.

Sri Lanka’s financial system has stabilised over the previous 9 months after the nation secured a $2.9 billion bailout from the Worldwide Financial Fund (IMF), introduced inflation ranges underneath management and launched into rebuilding its international trade reserves.

Sri Lanka’s reserves grew 26% to a 19-month excessive of $3.8 billion in July, helped by stronger remittances and tourism earnings. The forex has risen about 13.5% this yr, central financial institution information confirmed.

Regardless of the easing of the disaster, the nation nonetheless wants to finish debt talks with collectors by September, in time for its first IMF programme evaluate, and implement key financial reforms to place its restoration on a sustainable path.

Sri Lanka’s financial system is predicted to shrink about 2% this yr, in keeping with central financial institution estimates, after a 7.8% contraction final yr.

(Reporting by Uditha Jayashinghe; Modifying by Jacqueline Wong and Ed Osmond)

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