COLOMBO (Reuters) – Sri Lanka lifted its ban on the importation of trucks and heavy vehicles for the first time since March 2020, as per a gazette notification released on Tuesday. The country has been gradually easing import restrictions that were imposed due to a financial crisis caused by a shortage of dollars.
This marks the first rollback of vehicle restrictions since they were implemented in March 2020. The government notification, issued by President Ranil Wickremesinghe, who also serves as the finance minister, allows for the importation of heavy vehicles such as buses, trucks, and tankers.
However, the ban on the importation of passenger vehicles, including cars, will remain in effect.
Sri Lanka’s economy has been stabilizing over the past nine months, thanks to a $2.9 billion bailout from the International Monetary Fund (IMF). This, coupled with efforts to control inflation and rebuild foreign exchange reserves, has brought about positive changes.
The country’s reserves have grown by 26% to reach a 19-month high of $3.8 billion in July. This growth has been attributed to stronger remittances and increased earnings from tourism. Additionally, the Sri Lankan currency has seen a 13.5% increase this year, according to data from the central bank.
Despite these improvements, Sri Lanka still needs to finalize debt talks with creditors by September, in preparation for its first IMF program review. Furthermore, the country needs to implement crucial economic reforms to ensure a sustainable recovery.
According to estimates from the central bank, Sri Lanka’s economy is expected to contract by around 2% this year. This follows a significant contraction of 7.8% in the previous year.
Reported by Uditha Jayashinghe; Edited by Jacqueline Wong and Ed Osmond
Credit: The Star : News Feed
