Cabinet decides to fully suspend importation of vehicles

Tuesday, 25 May 2021 01:18 - - {{hitsCtrl.values.hits}}

The Cabinet yesterday decided to fully suspend the importation of vehicles considering the current economic impact due to COVID-19.

This was decided unanimously by the Cabinet yesterday chaired by Prime Minister Mahinda Rajapaksa, who is also the Finance Minister.

Previously, a proposal was put forward by the Finance Ministry to permit importation of limited vehicles in a cost-effective manner. The Government, in March 2020, decided to suspend the importation of vehicles, as an economic revival measure amidst the COVID-19 pandemic.

In February, Money, Capital Market and State Enterprise Reforms State Minister Ajith Nivard Cabraal told Parliament that the decision to impose the import ban on vehicles will be reviewed by the end of this year.

Vehicle importers yesterday said COVID-19 and import restrictions have put vehicle traders out of business, prompting the industry to call for help.

With zero sales for three months during the first lockdown in March to June 2020, and price hikes ranging from 10% to 15% for all vehicles, traders said formal motor trade had come to a halt during the year.