Import ban on motor vehicles

The government has imposed a complete ban on Motor Vehicles since March 2020 citing foreign currency outflows as the main reason. This has negatively impacted the Sri Lankan economy as well as vehicle importers and all related industries. These entrepreneurs have been in the motor vehicle industry for generations. Furthermore, those providing supporting services for motor vehicles have been adversely affected.

Severe issues faced by vehicle importers and related parties

Vehicle importers have faced major difficulties maintaining their business premises, paying off bank loans, rent and paying the salaries of their employees. Since we have been waiting for more than one and half years for importation to open up, it has brought us to a crucial juncture in which most traders have decided to close down their businesses.

As a responsible association we are fully aware of the unprecedented pressure the pandemic has brought upon the government. However, we expect a credible survival plan as well as the fullest support of the government for us to overcome our difficulties. Instead, the government has been carrying out various diverging tactics to control the frustration of the general public and the vehicle importers.

Last year the government announced that the importation will be “Reviewed in December 2020” and then in March 2021 they announced that they are considering a “Quota system” for vehicle importation. At present, they are making statements regarding a scheme in which local taxes could be paid in US dollars and vehicles to be imported without a dollar outflow. Hence it is simply evident that this is again another strategy by the officials to control the “Price bubble” and to defer the issue in hand. Even though various official requests have been made to the Minister of Finance to provide us with an audience to discuss our issues and to take our suggestions on board to overcome this situation, so far we have not been given the opportunity.
As evident from incidents around us, failure to consult industry experts on respective matters is a fundamental weakness of this administration. Focusing on the national budget 2022 we have listed down several budget proposals from VIASL. The main objective of these proposals is to develop the motor vehicle industry while increasing the government revenue. Above all we wish to provide an opportunity to the community, to purchase a quality vehicle at a reasonable price.