The Committee on Public Finance (CoPF) approved regulations under the Imports and Exports (Control) Act, No. 1 of 1969 Published in the Gazette Extraordinary No. 2449/60 of 15 August.

This approval was granted during a meeting of the Committee held recently (23) in Parliament, chaired by Dr. Harsha de Silva.

Accordingly, the said regulations to parliament seek approval to extend permission for the import of vehicles to boost the tourism sector.

Under the previous regulation introduced in May 2024, approval was granted to import 1,000 brand new vehicles, the officials said.

These vehicles could only be brought in under special permits issued by the Ministry of Tourism and the measure was aimed at strengthening transport facilities to support tourism development and was valid until 30 June.

Following a proposal by the Minister of Foreign Affairs, Foreign Employment and Tourism, the Cabinet decided in August to extend this facility for a further three months, until 30 September.

Accordingly, a fresh regulation, published in Gazette Extraordinary No. 2449/60 on 15 August, has now been placed before Parliament for approval under the Imports and Exports (Control) Act, No. 1 of 1969.

During the discussion on vehicle imports in consideration of the industry request for an increase in transport capacity at subsidised prices, officials explained that such concessions could not be granted under the current policy framework.

They further noted that providing relief to one sector would raise concerns of fairness and balance across other industries.

Furthermore, officials also highlighted challenges with the collection of the Tourism Development Levy (TDL).

While registered hotels and formal establishments contribute to the levy, many tourist rest houses and Airbnb operators are not part of the system and therefore do not make payments.

This has created an uneven playing field within the industry and reduced the funds available for tourism development.

Following the in depth consideration, the CoPF approved regulations under the Imports and Exports (Control) Act, No.1 of 1969 Published in the Gazette Extraordinary No. 2449/60 of 15 August.