Vehicle imports have decreased

According to the latest data reports from the Central Bank of Sri Lanka, the total value of vehicles imported into the country during the first six months of this year is USD 1.254 billion, or LKR 419.71 billion. In the first six months of last year, USD 1.57 billion (approximately LKR 526.14 billion) was spent on vehicle imports. Compared to that, the vehicle import cost in the first half of this year shows a decrease of approximately USD 318 million, or LKR 106.45 billion.

The value of vehicles imported into the country in June this year alone is USD 182 million (approximately LKR 60.93 billion), which is a 27.1% decrease, or LKR 22.76 billion, compared to the vehicle import cost in May. However, when compared to the USD 163 million (approximately LKR 54.55 billion) spent on vehicle imports in June last year, the cost in June this year has increased by LKR 6.38 billion. In May, USD 250 million (approximately LKR 83.67 billion) worth of vehicles were imported, and in April, including both commercial and private categories, USD 208 million (approximately LKR 62.40 billion) worth of vehicles were imported into the country.

Considering the first months of the year, vehicles worth USD 195 million (approximately LKR 58.50 billion) were imported into the island in March, approximately LKR 58.20 billion in February, and USD 224 million (approximately LKR 67.20 billion) in January.

The rapid increase in vehicle imports, leading to an expenditure of approximately USD 7 million per day, caused severe pressure on the Sri Lankan Rupee. To control this situation, the government took steps to increase the 30% surcharge imposed on imported vehicles by 50% to 45%. With this change in surcharge, effective from May 15th, the value of vehicles imported into the country daily decreased to USD 3.9 million. This increased surcharge percentage is scheduled to end on the 15th of this month.

Meanwhile, vehicle importers state that the excessive demand created in the local market following the relaxation of vehicle import restrictions in February last year, after five years, has now been met with the necessary supply. They point out that the previously high demand has now returned to normal, and since vehicles are not daily purchased goods, it would be fair and accurate to use 2019 data instead of last year's data when comparing future import figures.