Colombo, Nov 26 (PTI) The pent-up demand for car imports has declined after Sri Lanka allowed imports in February this year, for the first time in four years, Central Bank Governor Nandalal Weerasinghe
said on Wednesday.
“From July, there was an increase in opening letters of credit for car imports due to pent-up demand. When you compare import data since September in comparison, we find that the number of LCs is coming down,” Weerasinghe told reporters.
The import figures show that total vehicle registrations in October were slightly down from the previous month.
Weerasinghe said the local rupee exchange rate had depreciated based on the market conditions prevailing with vehicular and other imports rising.
He said USD 340 million from the IMF bailout was forthcoming in December. With other funding, Lanka expects an inflow of about USD 750 million by year-end, he said.
Sri Lanka stopped vehicle imports during the pandemic due to depleting foreign exchange reserves.
By early 2022, the country declared its first-ever sovereign default as the forex crisis led to months of street protests, toppling the government.
An Indian credit line of USD 4 billion helped Sri Lanka import its essentials until the 2023 IMF bailout of nearly USD 3 billion over 4 years. PTI CORR ZH ZH
