By: Staff Writer February 22, Colombo (LNW): The Sri Lankan government is actively developing a new policy for importing vehicles into the country, according to Minister Nalin Fernando, a member of the ministerial sub-committee tasked with exploring this issue. This announcement follows a recent meeting of the sub-committee, chaired by Prime Minister Dinesh Gunawardena, where the need for a revised import strategy was discussed. Minister Nalin Fernando noted that the lack of a clear import policy in the past is acknowledged as a key factor contributing to inefficient and potentially unnecessary vehicle imports. The new policy will likely focus on restricting imports of highly fuel-consuming vehicles and prioritize essential types of vehicles for the country’s needs, he noted. The government is to lift restrictions of vehicle imports partially allowing the motor traders to bring down small cars with engine capacity of 1000 CC and 1300 CC. This decision will be taken in accordance with a comprehensive policy and guidelines in vehicle imports soon, a senior Finance Ministry official said. Measures will be taken to allow motor traders to import some types of vehicles including private cars as the country was losing around Rs.300-Rs 450 billion in import tax revenue per year since March 2020, he said. The new vehicle importation policy has been devised by a special committee appointed by President Ranil Wickremesinghe. The new vehicle policy and guidelines will enable to lift the ban on private cars by considering the foreign exchange out flow as a percentage of other imported items, and the general demand for automobiles. The Vehicle Importers’ Association said that they are ready to import motor cars following discussions with authorities to formulate new laws or regulations with regard to vehicle importation. Meanwhile Sri Lanka vehicle spare parts traders complained that the prices of spare parts will increase by Rs 300-600 due to VAT hike of 18 per cent from 15 percent with effect from this month Sri Lanka is set to introduce an electronic vehicle policy called e-mobility IST  in collaboration  with the Environment Ministry and the Transport Ministry, Plantation Industries and Industries Minister Dr. Ramesh Pathirana disclosed While attending the National Automotive Conference organised by the Industrial Ministry and the Industrial Development Board, he said a total of 26 local companies are currently engaged in the vehicle assembly industry in Sri Lanka. Meanwhile, he said the government aims to make Sri Lanka the hub of the motor vehicle supply chain in Asia by 2035. The conference was held targeting vehicle manufacturers, vehicle importers, vehicle assembly personnel, vehicle spare parts manufacturers, and local value adders.