The nonequilibrium dynamics of a two-dimensional electron-hole gas is studied in the regime of strong and resonant pumping of the exciton resonance. The Coulomb collision rates are consistently determined by taking into account the light-induced coherence of the two-band system that leads to a dressing of the carrier spectral functions. The light dressing dramatically reduces the Coulomb scattering efficiency. Results are presented for Rabi oscillations in the time domain and dynamical Stark splitting in the pump-probe absorption spectra.