In order to avert a foreign exchange crisis in the face of the continued depreciation of the Sri Lankan rupee, Finance and Media Minister Mangala Samaraweera today announced a series of drastic reforms that would come into effect from today itself.
Under these reforms, the government has suspended issuing vehicle permits for MP for one year. In addition, vehicle permits issued for state sector employees have also been suspended for 06 months.
No LCS would be allowed to open using these permits until the end of the suspension, the Ministry announced.
Importation of vehicles for state institutions have also been suspended until further notice. Importation of super luxury vehicles by politicians and state institutions has been cited as key example by many for heavy outflow of currency.
Importers of all vehicles, except buses, lorries and ambulances, have been instructed to keep a 200 percent cash margin at the time of opening LCs.
The government has also imposed a 100% LC margins for Refrigerators, A/Cs, Televisions, Perfumes, Mobile phones, washing machines and footwear.
The loan to value ratio of hybrid vehicles has also been increased to 50:50. It previously remained at 70:30.