Central Bank Governor Dr. Nandalal Weerasinghe has announced that the government will impose taxes on vehicle imports if there is a significant increase in their numbers. This comes as the government starts to lift restrictions on vehicle imports, which were imposed earlier to help stabilize the economy.
In an interview with newspaper editors, Dr. Weerasinghe explained that the Central Bank has successfully built up foreign reserves that exceed the targets set by the International Monetary Fund (IMF), with reserves now totaling $6.5 billion. This boost in foreign reserves has given the country more economic flexibility, allowing for the gradual easing of import restrictions.
The Governor acknowledged that importing vehicles is a necessary step as the economy recovers, but he also stressed the government’s ability to control the situation through taxes if imports rise too quickly. He explained that this would be done to ensure that the influx of vehicles does not negatively impact the country’s economic stability.
The statement was made during a meeting between Dr. Weerasinghe and newspaper editors at the Central Bank, where they also discussed the country’s financial progress and the need to improve economic literacy among the public.
