Vehicle prices may rise temporarily amid new import surcharges and leasing restrictions, importers warn

The Central Bank of Sri Lanka (CBSL) has indicated that vehicle prices could see a temporary increase due to higher surcharges imposed on vehicle imports and fluctuations in exchange rates.

Speaking on the issue, representatives of the Sri Lanka Vehicle Importers’ Association of Sri Lanka urged authorities to provide relief at least for vehicles that have already been imported or for which Letters of Credit (LCs) have already been opened.

The Vice President of the Vehicle Importers Association of Sri Lanka, Arosha Rodrigo said the reduction of the loan-to-value (LTV) ratio would lower consumers’ purchasing power and affordability, which in turn would directly limit vehicle imports.

Meanwhile, the President of the Association Prasad Manage criticized the sudden revision of leasing regulations. He noted that leasing facilities previously available up to 50 percent had now been reduced to 40 percent, making it difficult for importers to sell vehicles already brought into the country.

He further stated that policy changes of this nature should have included concessions for vehicles already imported or those for which import procedures had already commenced.