Sri Lankan car importers request government to waive 3 pc penalty on imported vehicles

Colombo, Dec 29 (PTI) Sri Lankan car importers, in the wake of the destruction caused by cyclone Ditwah, urged the government to waive the 3 per cent penalty on vehicles cleared after three months.

“Our buyers who placed orders for cars want refunds as the cyclone damage has left them in financial difficulties," Prasad Manage, the President of the Automobile Importers Association, told the media, adding that the buying power of the consumer has reduced.

“We are also victims of the Ditwah cyclone with customers asking for refunds of advance deposits made," Manage added.

In Sri Lanka, imported cars are to be registered with the Department of Motor Traffic (DMT) within three months of the Customs Declaration date. Hefty monthly penalties of 3 per cent of the Cost-Insurance-Freight (CIF) value are imposed in case of non-compliance with the policy.

He also requested the government to waive the 3 per cent penalty while increasing the registration period of the vehicles to six months.

However, the import statistics have shown that total new vehicle registrations had already dropped prior to Ditwah making its landfall on November 28.  JB Securities, which monitors the market, said the total vehicle registrations had fallen to 43,810 units in November from 48,081 units in October.

The Brand-new motor car registrations in November totalled 781 units for the month, marginally lower than the 836 units recorded in October.  Three-wheeler and two-wheeler registrations also declined in the same period. Bajaj remained dominant in the market, followed by TVS.

Sri Lanka, which had banned car imports since 2020 due to COVID and the economic crisis of 2022, allowed imports from February this year.

“Before the import ban, Indian-origin vehicles dominated the Sri Lankan market. That is no longer the case," JB Securities stated, adding that Indian manufacturers still dominate the two-wheeler and three-wheeler segments.

The Indian companies are now almost absent from the motor car, SUV, and crossover categories, according to JB Securities. PTI CORR SKS SKS AMS AMS