ANNOUNCEMENT 29 Sep 2018
Sri Lanka has introduced restrictions on imports of vehicles and non-essential consumer goods to control the depreciation of the domestic currency.
NUMBER OF INTERVENTIONS
Notification of the Ministry of Finance and Mass Media
On 29 September 2018, the Sri Lankan Ministry of Finance and Mass Media announced several measures to control the depreciation of the Sri Lankan Rupee. The measures have been announced temporarily and include the increase of the Loan to Value ratio for Hybrid vehicles amended from 70:30 to 50:50. The measure is effective from 29th midnight and will be valid temporarily until further reviews.
The Notification has temporarily suspended imports of vehicles by state sector employees and state sector enterprises, thereby supporting local procurement of the same. Furthermore, the notification announced an indefinite suspension of imports of vehicles by Government Ministries, Departments, Statutory Boards, and State-Owned Enterprises
The Notification in order to curb imports has imposed requirements on traders to provide a 100-200% cash margin at the time of opening Letter of Credits. This restriction has been imposed on importers of all vehicles other than buses, lorries, & ambulances and importers of Refrigerators, Air Conditioners, Televisions, Perfumes, Telephones including Mobile phones, Washing Machines, Footwear, and Tyres.