Vehicle prices to go up, say importers | Sunday Observer

Vehicle prices to go up, say importers

The prices of imported vehicles will go up by around five percent due to the devaluation of the Sri Lankan Rupee against the Japanese Yen and the US Dollar, vehicle importers said.

Importers said as a result, future sales volumes will plummet due to the high prices of all categories of vehicles.

The price of a Suzuki WagonR may go up by around Rs. 150,000 to 200,000.

Vehicle Importers’ Association of Lanka (VIAL) President Indika Meerenchige said the current political instability in the country had worsened the situation, where the strength of the Rupee which has been falling over a considerable period.

Dealers said panic buying by importers and exporters being reluctant to sell dollars in early trade resulted in the fall of the currency.

The Rupee dropped to Rs. 157.20 against the Green back dollar and Rs. 1.4859 a Yen on Thursday.

The local currency weakened 1.3 percent so far this year and lost 2.5 percent last year and 3.9 percent in 2016.

“We cannot predict how long the situation would last. However, prices of newly imported vehicles will go up,” Meerenchige said. The currency will be pressured due to the demand for dollars by importers, dealers said.

Another association linked to the import of vehicles, has predicted vehicles prices to go up by around 10 percent - LF