Vehicle Import Restrictions to be Lifted!

[Izza]

Last minute election promises maybe? But this provides a concrete timeline: https://pmd.gov.lk/news/import/

In a nutshell, the timelines are:

• Stage 1: The importation of public passenger transport vehicles, special purpose vehicles, and other non-motorized goods will be allowed starting October 1, 2024.
• Stage 2: The temporary suspension on the importation of commercial or goods transportation vehicles will be lifted on December 1, 2024.
• Stage 3: The importation of personal usage motor vehicles (including cars, vans, sports utility vehicles, pickups, etc.) will be permitted starting February 1, 2025.

Not a lot of details provided about a quota etc. I hope they won't just allow to import without any control. 

Edited Saturday at 07:16 AM by Izza

[Nuwan2806]

This is a pre election bait.

[amsandun]

හාවොන්ට චන්ද කැරට් අලයක් (Election Carrot) 😄 

the story have been around for a while now. There maybe some imports (Public transport/ Goods transport etc) as said but don't be fooled that they will allow personal imports as in old times.

[iRage]

True...this could be pre-election bait. Yes the plan for opening up imports (cars and many other things) have been in discussion for a while (IMF and other international agencies do urge the normalization of the markets).

I sincerely hope there is some sort of quota system so that we don't end up in the same predicament. Just because we increase our FOREX reserves by not paying our debtors does not mean we actually have money to "spend".

Then..no one is actually talking about the taxation of the imports as well. Do we still hold on to the existing structure ?

Finally, this is a huge question. Can people actually afford to buy new cars?

Granted most of our people will take out huge leases/loans and go buy it anyway...but that doesn't mean they can actually afford it. 

[Izza]

I agree with most of the comments - however, this is different from the previous story that has been around in the sense that actual dates are proposed. But yeah, right now it does seem like this is a pre-election BS as usual, albeit a bit scary unless its properly planned. 

3 hours ago, iRage said:

Just because we increase our FOREX reserves by not paying our debtors does not mean we actually have money to "spend".

Yup, exactly. 

3 hours ago, iRage said:

Finally, this is a huge question. Can people actually afford to buy new cars?

True. I know for sure that I cannot/won't. Also right now, I don't think SL as a country can afford too (I mean private use vehicles) - as a car enthusiast I would love to see some of the newer cars in SL, but definitely not at the cost of losing whatever the little FC reserves we have managed to collect in the last couple of years. 

[Gummybr]

On 9/14/2024 at 1:59 PM, Nuwan2806 said:

This is a pre election bait.

+1 on that

On 9/16/2024 at 9:13 AM, iRage said:

True...this could be pre-election bait. Yes the plan for opening up imports (cars and many other things) have been in discussion for a while (IMF and other international agencies do urge the normalization of the markets).

I sincerely hope there is some sort of quota system so that we don't end up in the same predicament. Just because we increase our FOREX reserves by not paying our debtors does not mean we actually have money to "spend".

Then..no one is actually talking about the taxation of the imports as well. Do we still hold on to the existing structure ?

Agreed, there has to be a mechanism to stop people importing massive numbers of vehicles. Even the migrant worker permit a lot of vehicles (close to 1500-2000) were imported. Some are still at car sales. Our unscrupulous car dealers are licking their lips waiting for this to happen to make money as if what they made in the last one and a half years is not enough.

With such imports our SLRs to Dollar will hit 400-450 easily. And then you go back to the old queue era where you wont have money to get petrol or diesel like in 2022. Inflation will go over the roof.

I believe more than tax strict regulations are needed for the automobile industry where there are controls on importers and correct taxing of the seller should be made possible before you start importing. The guys who imported the EV's wouldnt have paid the VAT for sure and would have bypassed that.

On 9/16/2024 at 9:13 AM, iRage said:

Finally, this is a huge question. Can people actually afford to buy new cars?

Granted most of our people will take out huge leases/loans and go buy it anyway...but that doesn't mean they can actually afford it. 

As it stands it will be difficult for people to buy given the country situation, but we have seen vehicles change hands at over 100mil which was a magic figure prior to 2021. Only a handful of vehicles (Bentleys and Rolls Royce and a few Maybachs) came at that price point.

The small cars will also go up in price and they will still sell if the second and market falls for them, if not people wont pay 10mil to buy brand new.

I have two questions on this lifting of import restrictions.

1. what happens to the people who started the  assembly projects? Will they stop manufacturing and start importing again?

2. What about the permits given to the tourism industry? What happens to people who went through hell to get permits (1000) when they can just buy next year rather than using their own dollar earnings.

The assembly projects have been producing over 3000 vehicles per year, so do we need more? We have already sent $$ for these vehicles.