The removal of the import ban on vehicles to Sri Lanka should be carefully and very methodically done according to several speakers at the Ceylon Motor Traders Association hosted event titled ‘Mobility and Economic Growth’ on Tuesday.
Chief Executive of Standard Chartered Bank, Bingumal Thewarathanthri, said that the moment the vehicle ban is lifted, the US dollar would once again shoot up as it will drain foreign currency out of the country. “Hence the best way to do this is to wait until the debt restructuring process is finalized, the third trenches of the IMF received and the foreign reserves strengthen further.”
He said that the government was on the right path in obtaining the third IMF disbursements and also coming to a manageable settlement on debt restructuring. “We also see around USD 100 to 200 million added to reserves each month and if this trend continues Sri Lanka may be in a suitable ‘financial strength’ to allow import of vehicles when its reserves reaches around USD 6 billion. “This could be achieved by the end of this year.”
He however said that proper documentation should be made available and the government must ensure that all legal taxes are paid equally by everyone. He also said the ‘Permit system’ should be done with as firstly it deprives revenue to the government and second permit holders own the vehicle but sell the permit to make money.
Meanwhile Deputy Head of Mission, Japanese Embassy Katsuki Kotaro said that though there was urgency to firstly allow import of E vehicles, Sri Lanka does not have the infrastructure for Colombo. “I stay in a leading expensive apartment complex but still I cannot find a daily charging point for my E vehicle.”
“So what I suggest for the government is to first allow Hybrid cars until 2030 and then move into the complete importation of E vehicles. This will give sufficient time to have a good E charging structure all over Sri Lanka.”
Kotaro also said that Japan is planning this very well and there will be a complete E vehicle using the country by 2025.
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