Sri Lanka's vehicle imports plummet to the lowest in 36 months

Sri Lanka’s vehicle imports continues plummeting to very low levels as a result of tax increases and other controlling measures, the Motor Traffic Department claimed.

Vehicle registrations across most categories have declined in June comparing to statistics in May, a drop in 2-wheeler registrations have driven down the total to 26,201 the lowest on record over the past 36 months.

The revenue generated from motor vehicles significantly declined by 46.2 per cent to Rs. 40 billion in the first four months of 2019, which was 16.5 per cent of the total annual estimate for 2019.

This drop was mainly due to reduction of imports of motor cars by 70.2 per cent stemming from the restriction imposed on cash margin for the establishment of Letter of Credits (LCs) and the temporary suspension of the establishment of LCs for the importation of motor vehicles under the concessionary permit schemes.

Upward revisions of excise duty rates in August 2018 on motor vehicles with engine capacity less than 1000cc as measure of controlling the foreign currency outflow and the revision of excise duty rates on motor vehicles were the other factors tords this end.

Total car registrations recorded 1,580 units in June down from 1,816 units in May and significantly down from 6,819 units 12 months ago.

Brand new cars recorded 222 units in June down from 291 units in May and 992 units 12 months ago. Small cars accounted for bulk of them recording 185 units (83%). Imports from India and Japan accounted for 45% and 41% of units, respectively. Financing share was 50% in line with the normal monthly average.

Electric cars recorded 7 units in June up from 6 units in May but marginally down from 10 units 12 months ago. Nissan Leaf accounted for 6 of these units.

SUV registrations recorded 289 units in June down from 303 units in May and significantly down from 637 units 12 months ago.

Bus registrations recorded 40 units in June down from 66 units in May and significantly down from 177 units 12 months ago.

Van registrations recorded 480 units in June marginally up from 464 units in May and significantly down from 665 units 12 months ago.