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Sri Lanka to allow car imports by individuals with restrictions

COLOMBO (EconomyNext) – A 1.5 million rupee annual fee for car imports, seen as an undermining of economic freedoms of less affluent Sri Lankans may not completely prohibit citizens from importing cars individually.

Individuals will be allowed to import cars without the 1.5 million rupees penalty provided they keep the car without transferring to another person for four years, according proposals giving effect to a revised budget presented on January 29.

A nominal transfer to a leasing company is not considered a sale.

The budget proposed a 1.5 million annual levy on car importers which was seen as a way to hurt small and medium enterprises and individuals who import cars and favour large companies especially in the brand new car segment by restricting competition.