Finance Ministry announces steps to ease the pressure on LKR

(FASTNEWS|COLOMBO) – The Government on Saturday (29) decided to suspend the issuing of vehicle permits to Members of Parliament (MPs) for a period of one-year.

The Finance Ministry said the decision was taken as part of the temporary measures put in place to ease the pressure on the Sri Lankan Rupee (LKR) with effect from midnight Saturday.

The importation of vehicles for Government Ministries, Departments, Statutory Boards, State-owned Enterprises will also be suspended until further notice.

Other steps taken to ease the pressure on the Rupee includes a six-month suspension of the importation of vehicles using the concessionary permits issued to entitled State sector employees. No Letters of Credits (LCs) will be permitted to be opened based on these permits during this period.

The Finance Ministry said that the Loan to Value Ratio (LTV) for Hybrid vehicles will also be revised from 70:30 to 50:50 basis.

Importers of all vehicles other than buses, lorries, and ambulances will have to keep a 200 per cent cash margin at the time of opening of the LCs.

Further, the requirement of 100 per cent cash margin has been imposed for the import of refrigerators, air conditioners, televisions, perfumes, telephones including mobile phones, washing machines, footwear and tyres.

However, though these measures will be effective temporarily from Saturday, the Government says it will continuously monitor the exchange rate fluctuations and will take appropriate action accordingly.