May 02, Colombo (LNW): In a notable policy shift aimed at easing supply constraints in the automotive sector, the Ministry of Finance has announced a fresh set of relaxations on vehicle import restrictions, effective from April 29, 2025.
The move signals a gradual loosening of controls that have been in place for several years as part of broader measures to stabilise Sri Lanka’s economy during its financial crisis.
The revised regulations, issued under the signature of President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development, are expected to facilitate the immediate release of numerous vehicles that have been held at ports for weeks due to previous import limitations.
Amongst the categories now approved for clearance are popular hybrid models, including the Toyota Raize and Nissan X-TRAIL, as well as other environmentally friendly vehicles utilising comparable technologies.
The shift has been welcomed by industry stakeholders who have long voiced concerns over the impact of prolonged import restrictions on both consumers and the automotive trade.
Speaking on the development, the Chairman of the Vehicle Importers’ Association, Prasad Manage, noted that the new directive offers much-needed relief to importers and dealers who had seen vehicles held up in limbo for nearly two months.
He emphasised that the clearance of hybrids would also help meet the growing demand for fuel-efficient, low-emission vehicles amid rising environmental consciousness and cost pressures.
In a related move, the government has further extended its liberalisation by lifting the ban on the importation of new, unregistered motorcycles. This change comes under a separate gazette notification, which outlines a licensed import mechanism for new motorbikes, providing a formal channel for dealers to resume trade within a regulated framework.
Industry experts believe this decision could inject fresh dynamism into the two-wheeler market, which remains crucial for middle-income consumers and the urban workforce reliant on affordable mobility.
The relaxation of these restrictions is seen as part of the administration’s broader attempt to revive consumer markets and encourage investment in sectors that have suffered under years of austerity and import controls.
Whilst the government continues to stress the importance of managing foreign exchange reserves prudently, it appears to be testing a more balanced approach—easing certain controls whilst maintaining overall macroeconomic discipline.
Critics, however, caution that increased imports could place renewed pressure on the trade deficit if not managed carefully. They urge policymakers to ensure that any easing of restrictions is accompanied by robust fiscal planning and continued efforts to boost exports and attract foreign capital.
