Diesel now costs Rs. 720 per litre, says President AKD. (Current selling price: Rs. 392)

Diesel now costs Rs. 720 per litre, says President AKD. (Current selling price: Rs. 392)

⭕️ 1 1/2 years ago, when the Government was preparing to lift the vehicle import ban, we suggested revamping Sri Lanka’s 🇱🇰 vehicle tax structure in favour of more energy-efficient EVs and hybrids, mainly to reduce long-term foreign exchange pressure from fuel imports.

⭕️ But instead of making a policy shift in that direction, the Government continued with higher tariffs across the board and actually increased tariffs on EVs.

⭕️ Now, the same revenue gained through those higher tariffs is effectively being burned to keep fuel prices affordable, while the country continues to lose foreign exchange on fuel imports. At the same time, rupee depreciation is creating additional pressure on fuel costs.

⭕️ The reopening of vehicle imports after a five-year ban gave Sri Lanka a once-in-a-generation chance to move towards a more energy-efficient vehicle fleet and reduce long-term foreign exchange dependence on fuel imports. But nearly 600,000 vehicles and more than one and a half years later, that opportunity may already be slipping away.

Now, every Sri Lankan is paying the price for that missed policy Opportunity.

#SriLanka #EV