President Anura Kumara Dissanayake stated that Letters of Credit (LCs) worth between USD 1.5 to 1.8 billion are expected to be opened in the coming months for vehicle imports, with USD 1.27 billion already opened as of yesterday.
Addressing the Parliament, he firmly assured that there will be no suspension of vehicle imports and no increase in import taxes, which are already high, despite attempts by certain parties to spread false information suggesting otherwise.
Emphasizing the importance of the motor industry, he said the government recognizes it as a vital economic sector and has no intention of shutting it down. On broader economic matters, the President said that Sri Lanka will not lose its GSP+ trade benefits by 2027, noting that fruitful discussions are ongoing with the European Union. He highlighted the need for a strong economy that delivers benefits to low-income communities and praised the Central Bank for successfully stabilizing the Sri Lankan rupee amid global currency volatility.
The country recorded USD 8.4 billion in exports in 2024, up from USD 7.8 billion in 2023. The United States and the European Union accounted for over 40 percent of the export volume, highlighting the importance of continued export diversification. During the first six months of 2024, exports to the EU grew by 11%, to Africa by 35%, Eastern Asia by 22%, and India by 26%. The President acknowledged issues faced by local industrialists but emphasized that while the government will ensure essential services such as electricity are provided, industrialists must also fulfill their tax obligations.
The export sector recorded a 10% growth in the first half of 2024, making it the strongest export performance to date. Worker remittances reached USD 5.9 billion in 2023 and are expected to rise to USD 6.5 billion in 2024, with USD 3.7 billion already received this year. Foreign Direct Investment (FDI) in the first half of 2024 doubled from the previous year to USD 507 million, and the Port City has recently attracted four new projects totaling USD 1.3 billion. The government anticipates that Sri Lanka’s foreign reserves will surpass USD 7 billion, marking a significant milestone in the country’s economic recovery and development.
