IMF backs Sri Lanka’s plan to boost revenue with vehicle imports

The Sri Lankan government has set positive financial targets for 2025 while engaging with the IMF programme.

The IMF also suggested that allowing vehicle imports could be a “very good source of revenue.”

Peter Breuer, Senior Mission Chief at the IMF, said that lifting restrictions on vehicle imports was discussed during this review and in earlier ones.

“We knew removing restrictions on vehicle imports could be a very good source of revenue for the government in the year ahead. It’s one of the rare opportunities to increase government revenue,” he said.

The IMF also emphasized that this should be handled carefully to avoid putting too much pressure on the country’s foreign exchange reserves.

In 2025, Sri Lanka aims to increase government revenue to 15.1% of GDP and achieve a 2.3% surplus in its primary account.