Vehicle imports at a record low

Sri Lanka’s vehicle imports are record low and the vehicle sale industry has collapsed. As soon as vehicle imports were limited as a measure taken to save foreign currency vehicle registrations fell to 3,556 units in March 2021 down from 13,219 units in March 2020 when a lockdown started and down from 34,475 units in January 2020.

 

In march2020 only 14vehcale units were registered while under normal circumstances about 2000 vehicles a month would have been registered. While the limitation of vehicle imports saves foreign exchange it’s a heavy loss for the government as tax revenue is missed.

 

Only 11 three wheelers were registered in March down from 762 in March 2020. According to the Vehicle Importers Association of Sri Lanka around 100,000 direct and indirect employees will have to be made redundant while also placing 350,000-400,000 dependents of these employees in dire straits.

 

Some suggest that the country needs to develop a local vehicle assembly industry in Sri Lanka.