Vehicle prices in Sri Lanka could see a temporary increase as a result of higher surcharges on imports and fluctuations in exchange rates, according to indications from the Central Bank of Sri Lanka (CBSL), raising concerns among importers over the impact on both businesses and consumers.
Representatives of the Vehicle Importers’ Association of Sri Lanka have urged authorities to provide relief for vehicles that have already been imported or for shipments where Letters of Credit (LCs) had been opened before the latest policy changes took effect.
Vice President of the Association, Arosha Rodrigo, said the reduction in the loan-to-value (LTV) ratio would weaken consumers’ purchasing power and affordability, which could directly limit vehicle imports in the market. He noted that tighter financing conditions may make it more difficult for buyers to purchase vehicles, creating added pressure on the industry.
Meanwhile, Association President Prasad Manage criticized the sudden revision of leasing regulations, pointing out that leasing facilities previously available up to 50 percent had now been reduced to 40 percent. He said the change would make it harder for importers to sell vehicles that had already been brought into the country under earlier market expectations.
Manage further stressed that policy revisions of this nature should have included concessions for vehicles already imported or for transactions where import procedures had already begun, warning that abrupt regulatory shifts could place additional strain on the vehicle import sector.
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