President Anura Kumara Dissanayake announced on 21 January that new vehicle imports to Sri Lanka will be priced higher than current second-hand vehicles due to controlled measures aimed at stabilising the economy and protecting financial institutions.

Speaking on the Sirasa Satana political talk show, the President emphasised the need for a balanced approach to vehicle imports, warning that a drastic drop in second-hand vehicle prices could destabilise banks and leasing companies, potentially triggering a financial crisis.

He revealed that the government has allocated USD 1.2 billion for vehicle imports in 2025, a significant reduction from the USD 1.9 billion spent in 2018 and USD 1.4 billion in 2019. The President underscored that unregulated imports could deplete foreign reserves and spark another economic crisis.

“Uncontrolled imports could exhaust our foreign reserves entirely. We must ensure that imports are distributed evenly throughout the year rather than concentrated in February, which could lead to a critical dollar outflow,” he explained.

Vehicle imports are set to resume in February 2025 under strict controls to prevent a sudden surge. These measures, coupled with limited import volumes, are expected to drive up prices for new vehicles compared to second-hand options.

“There should be a balance between the new vehicle and second-hand vehicle markets. It would create problems for the economy if the second-hand vehicle market collapses. As a result, brand-new vehicles may be priced slightly higher,” he noted.

The President also clarified that vehicles cannot be imported using previously issued permits under the current framework, though this policy may be revisited later.

“At this stage, importing vehicles using pre-issued permits will not be allowed. That will be reconsidered at a later stage,” he stated.