No price hike for vehicles already imported by May 15: Deputy Minister

Colombo, June 19 (Daily Mirror) - Labour Minister and Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando says there is no possibility of increasing prices for vehicles that had already been imported to the country by May 15.

Speaking to the media, the Deputy Minister also said that the government had not ruled out any move to suspend vehicle imports, while rejecting claims of a sharp surge in letters of credit (LCs). He said that recent import demand was already showing signs of moderation following the government’s decision to impose a temporary surcharge on vehicle import duties aimed at easing pressure on foreign exchange reserves.

According to him, 380 LCs were opened on May 15 alone, covering 1,782 vehicles valued at US$ 23.71 million.

Dr. Fernando clarified that the temporary surcharge was not introduced as a tax, but as a short-term measure to prevent undue pressure on the Sri Lankan rupee against the US dollar. He explained that the sudden increase in foreign currency demand for vehicle imports had contributed to unnecessary depreciation pressures on the rupee.

He further said that the government had requested individuals to postpone vehicle imports for personal use by three months, stressing that no measures had been taken to restrict imports or slow economic activity.

“If someone cannot wait for three months, they can import vehicles by paying the surcharge under government policy. Importers are aware that they have to pay additional charges. Except for that, it is not fair to increase prices for vehicles that are already being imported to the country,” the Deputy Minister said.