Vehicle Prices in Sri Lanka: Initial Surge Expected with Gradual Stabilization, Says President

President Anura Kumara Dissanayaka announced that vehicle imports will resume in February after a five-year suspension. He noted that while prices may initially rise due to high demand, they are expected to gradually decrease over time as the market stabilizes.

Local vehicle importers have indicated that the current market prices are likely to increase following the resumption of imports, primarily due to changes in the duty structure implemented by the government in January. These changes have led to a substantial rise in the marginal cost of importing vehicles. Additionally, imports will be subject to significant restrictions.

Economic analysts caution that unregulated vehicle imports could trigger a foreign exchange crisis, especially with the current low-interest rates on bank loans. They emphasize the importance of maintaining a positive balance in the country’s goods account to prevent such issues.