Sri Lankan tyre dealers, traders, and buyers are faced with a looming tyre scarcity in the country, owing to the prevailing restrictions on importation, the Asia Tyre Importers’ Association (ATIA) said, appealing to the Government to safeguard the industry that powers economic activity across sectors and help “avoid an impending calamity”.
The Government has classified 156 groups of products including tyres as non-essential imports and imposed restrictions on their importation in April 2020, with the aim of controlling foreign exchange outflows. The Government relaxed imports for a few tire sizes in July 2020, but several sizes of tires are still classified as restricted items.
Going beyond safeguarding the interests of tyre importers and the innumerable other stakeholders who are a part of this indispensable industry, the association said it seeks to raise awareness on the possible issues resulting from this crisis and to protect all Sri Lankans.
“This includes a string of complications that could result caused by old, second-hand, or substandard tyres such as poor road grip, loss of control, sub-optimal air pressure levels, extended braking distances, etc. This in turn could lead to greater risk of accidents that would put passengers, road users, and other bystanders in harm’s way. Fleet owners would be particularly affected as their vehicles need tyre changes every few months to ensure safe, uninterrupted operations. These fleets manage the distribution of highly essential goods around the island and any disruptions they face would affect consumers as well as traders and manufacturers across several industries. It would also cause loss of employment both within the sector and across all connected industries, putting further pressure on the economy,” it said.
There is also an increased dependence on limited public transport infrastructure and issues faced by vehicle owners due to the non-availability of tyres recommended by vehicle manufacturers.
ATIA Vice Chairman Sunil Fonseka noted that locally manufactured tyres accounted for roughly 50% of the country’s annual demand of 3.1 million tyres in 2019. “Up to 40% of the 1.2 million passenger cars, light trucks, trucks, and buses on our roads need imported tyres. With approximately 150,000 imported tyres being sold per month in Sri Lanka, existing stock levels are draining quickly with the current import restrictions; we foresee the country experiencing a shortage of tyres within the next 30 days.”
“Locally, tyres are not manufactured for European and Japanese premium vehicles such as Mercedes Benz, BMW, Volvo, Audi, and Toyota Land Cruiser and does not meet the specifications and standards of Japanese vehicle manufacturers such as Toyota and Nissan for several of their vehicles. Also, tyres for large vehicles which are used to carry containers, petroleum products, and gas are not manufactured. Truck fleets of government and private sector organisations – including the Ports Authority, tri-forces, and Ceylon Petroleum Corporation – are already affected. 900R20, 10.00R20, 11.00R20, and 1200R20 steel belted radial tyres are critical for the public sector transport (services), government sector departments, and all security forces.
“We believe that there will be a severe shortage for prime mover machines OE tyres and truck and bus radials in the coming weeks. Several sizes of motorcycle tires for Yamaha (including the police bikes), Honda, Suzuki, TVS, Bajaj, and other branded bikes too are not manufactured in Sri Lanka. Furthermore, the local manufacturer who already enjoys a monopoly also remits a portion of its earnings to its Indian partners,” he added.
The ATIA comprises around 50 tyre importers who together bring down over 900,000 tyres per year. The association, through its membership, provides direct and indirect employment to about 2,500 and 10,000 Sri Lankans, respectively. Imported tyres generate 67% customs duty and other tax amounting to Rs. 4.5 billion per annum.Tyre import restrictions to hurt economic activity: Tyre importers
25 Aug 2020
Tyre import restrictions to hurt economic activity: Tyre importers
25 Aug 2020
Sri Lankan tyre dealers, traders, and buyers are faced with a looming tyre scarcity in the country, owing to the prevailing restrictions on importation, the Asia Tyre Importers’ Association (ATIA) said, appealing to the Government to safeguard the industry that powers economic activity across sectors and help “avoid an impending calamity”.
The Government has classified 156 groups of products including tyres as non-essential imports and imposed restrictions on their importation in April 2020, with the aim of controlling foreign exchange outflows. The Government relaxed imports for a few tire sizes in July 2020, but several sizes of tires are still classified as restricted items.
Going beyond safeguarding the interests of tyre importers and the innumerable other stakeholders who are a part of this indispensable industry, the association said it seeks to raise awareness on the possible issues resulting from this crisis and to protect all Sri Lankans.
“This includes a string of complications that could result caused by old, second-hand, or substandard tyres such as poor road grip, loss of control, sub-optimal air pressure levels, extended braking distances, etc. This in turn could lead to greater risk of accidents that would put passengers, road users, and other bystanders in harm’s way. Fleet owners would be particularly affected as their vehicles need tyre changes every few months to ensure safe, uninterrupted operations. These fleets manage the distribution of highly essential goods around the island and any disruptions they face would affect consumers as well as traders and manufacturers across several industries. It would also cause loss of employment both within the sector and across all connected industries, putting further pressure on the economy,” it said.
There is also an increased dependence on limited public transport infrastructure and issues faced by vehicle owners due to the non-availability of tyres recommended by vehicle manufacturers.
ATIA Vice Chairman Sunil Fonseka noted that locally manufactured tyres accounted for roughly 50% of the country’s annual demand of 3.1 million tyres in 2019. “Up to 40% of the 1.2 million passenger cars, light trucks, trucks, and buses on our roads need imported tyres. With approximately 150,000 imported tyres being sold per month in Sri Lanka, existing stock levels are draining quickly with the current import restrictions; we foresee the country experiencing a shortage of tyres within the next 30 days.”
“Locally, tyres are not manufactured for European and Japanese premium vehicles such as Mercedes Benz, BMW, Volvo, Audi, and Toyota Land Cruiser and does not meet the specifications and standards of Japanese vehicle manufacturers such as Toyota and Nissan for several of their vehicles. Also, tyres for large vehicles which are used to carry containers, petroleum products, and gas are not manufactured. Truck fleets of government and private sector organisations – including the Ports Authority, tri-forces, and Ceylon Petroleum Corporation – are already affected. 900R20, 10.00R20, 11.00R20, and 1200R20 steel belted radial tyres are critical for the public sector transport (services), government sector departments, and all security forces.
“We believe that there will be a severe shortage for prime mover machines OE tyres and truck and bus radials in the coming weeks. Several sizes of motorcycle tires for Yamaha (including the police bikes), Honda, Suzuki, TVS, Bajaj, and other branded bikes too are not manufactured in Sri Lanka. Furthermore, the local manufacturer who already enjoys a monopoly also remits a portion of its earnings to its Indian partners,” he added.
The ATIA comprises around 50 tyre importers who together bring down over 900,000 tyres per year. The association, through its membership, provides direct and indirect employment to about 2,500 and 10,000 Sri Lankans, respectively. Imported tyres generate 67% customs duty and other tax amounting to Rs. 4.5 billion per annum.Kapruka
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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!