Sri Lanka will be facing a tyre shortage soon as a result of the prevailing restrictions on imports imposed by the government to promote import substitution and prevent foreign exchange out flows, several tyre dealers, traders and buyers complained.
The government had classified 156 groups of products, including tyres, as non-essential imports and imposed restrictions on their importation in April 2020.
It has relaxed imports for a few tire sizes in July 2020. However, several sizes of tires are still classified as restricted items, Tyre Importers Association claimed.
Imported tyres generate 67% customs duty and other tax amounting to Rs. 4.5 billion per annum. Priced competitively, they offer an affordable option to motorists.
Sunil Fonseka, the Vice Chairman of Asia Tyre Importers Association noted that locally manufactured tyres accounted for roughly 50% of the country’s annual demand of 3.1 million tyres in 2019.
“Up to 40% of the 1.2 million passenger cars, light trucks, trucks and buses on local roads needed imported tyres” , he said.
With approximately 150,000 imported tyres being sold per month in Sri Lanka, existing stock levels are draining quickly with the current import restrictions; he said adding that they foresee the country experiencing a shortage of tyres within the next 30 days.
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