Ceylon Chamber vehicle industry report highlights challenges | Page 2 | Sunday Observer

Ceylon Chamber vehicle industry report highlights challenges

26 September, 2021

The report features the latest information on the economic contribution of the industry, motor vehicle registration, ownership transfers, population, imports of motor vehicles (a detailed analysis by vehicle category and HS code), issuance of driving licenses, recent regulatory developments, the way forward and global motor vehicle industry.

The publication, prepared by the Economic Intelligence Unit of the Ceylon Chamber of Commerce (CCC) provides a detailed analysis and overview of the industry covering 2019 and 2020.

The report highlights that 2019 and 2020 were challenging years for Sri Lanka’s motor vehicle industry due to import restriction. As such, imports of motor vehicles recorded a notable decline during the past two years, after experiencing a significant growth in 2018.  Since the import of motor vehicles into Sri Lanka takes a significant portion of the total import bill of the country (3% in 2020), reduction in motor vehicle imports contributed largely to narrowing of the trade deficit.

The trade deficit contracted by around USD 2 bn last year and the lowered motor vehicle imports during the year made a significant contribution to this.

The decline in motor vehicle imports resulted in loss of revenue to the government mainly due to fall in collection of excise duty and luxury tax.