Leading vehicle importers in Sri Lanka report a significant drop in demand for vehicles due to a sharp increase in prices following the lifting of the import ban. Despite expectations of high demand with the resumption of vehicle imports, importers say that such demand has not materialized, and supply delays persist due to import restrictions.
Importers have been informed that imported vehicles must be NE registered within three months or re-exported, failing which they may face fines or have their import licenses revoked. As a result, they only initiate the import process after receiving a confirmed order from a buyer.
Under these circumstances, importers say it takes approximately five months from a customer placing an order to receiving the vehicle. This delay, coupled with the escalating prices of new vehicles, has discouraged buyers, leading them to either abandon their purchases or opt for used cars.
Toyota Lanka, a leading vehicle importer, has removed vehicle prices from their website and only provides them upon request. A few months ago, their website listed prices such as Rs. 6.7 million for a Toyota Vios, Rs. 9.5 million for a Toyota Raize, and Rs. 15.3 million for a Toyota Rush. The price of a Suzuki Wagon R, a popular car in Sri Lanka, has now reportedly exceeded Rs. 7 million.
While there is a high demand for electric vehicles, their prices remain very high, and the waiting period for delivery after placing an order is around six months. Some prominent car dealerships in the country have no vehicles available, while used car prices at other dealerships have risen significantly.
Despite a senior official from the Port Authority stating that around 950 vehicles in approximately 400 containers have arrived at the Colombo Port from Japan and other countries in recent months, with a significant number also arriving at the Hambantota Port, the Chairman of the Vehicle Importers’ Association, Prasada Maanage, maintains that vehicle importers across the island have sufficient stocks of new vehicles for purchase at reasonable prices. He also stated that used car prices have dropped considerably.
