Vehicle importers say that the vehicle prices, which were rising unusually high due to a temporary bubble caused by the imposition of vehicle import restrictions in Sri Lanka, are now falling rapidly.
The prices of vehicles have decreased due to incidents such as the increase in interest rates that have been in effect since this month, the continuous increase in fuel prices and the fact that there is currently a shortage of spare parts in the country.
However, even though the prices of vehicles have come down, spare parts and vehicle maintenance fees have gone up, prompting vehicle owners to sell their vehicles in bulk as they cannot afford the maintenance costs of their homes.
The rise in spare parts prices has also had an impact on the three-wheeler drivers who provide rental services for a living.
In view of this situation, there were reports that vehicle repair shops are also closing rapidly in Sri Lanka.
As a result, the majority of those employed at auto repair shops have lost their sources of income.
Many owners of vehicles bought on lease basis are also tempted to sell the vehicles saying that they will allow the old lease installments to be paid off with interest.
It appears that it is due to the loss of jobs, uncertainty of income, inability to pay lease due to high commodity prices, etc.
Leasing interest rates, which were around 17% earlier, have now reached the level of 25% – 30%.
With the ban on the import of vehicles for more than two years, the prices of old vehicles, sometimes even 20-30 years old vehicles in this country, have increased extremely abnormally.
The Governor of the Central Bank had said at that time that this is a temporary bubble and the price of vehicles will come down with the importation allowed.
In any case, in the absence of new vehicles in the country, the prices of used vehicles have risen abnormally, sometimes more than four times.
During that time, several new vehicles were introduced in Sri Lanka, which had been imported from parts and started to be assembled in Sri Lanka, and those vehicles are still being sold.
But although some of these vehicles start at a certain price and are sold at higher prices, it is not possible to see rapid sales.
Due to the economic crisis in the country, fuel problems, etc., some other vehicles assembled in this country are sold at a price of more than Rs. 10 million, and their sales are also slow.
In the meantime, an electric car manufactured in Sri Lanka was introduced as a solution to the fuel problem, and although it has not yet reached the market, the public has not seen much appreciation for its condition along with its published prices.
Also, nowadays there is a demand for electric motorcycles and bicycles. Such productions can also be found in this country.
In people’s opinion, in the face of the ongoing economic crisis, if an electric vehicle assembled in Sri Lanka is released to the market at a low price, with the highest possible quality, and if a program is implemented to deliver solar panels to homes at a subsidized price, the vehicle problem, the fuel crisis and the electricity crisis in Sri Lanka will be solved at the same time.
It has been decided to completely stop the importation of fuel-powered vehicles for public service in Sri Lanka through a previous budget resolution.
Also, a permit system has now been introduced for the import of electric cars subject to restrictions for foreign workers if they send money to this country legally.
