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United Motors Head Office in Union Place[/caption]
Amidst prevailing vehicle import restrictions, United Motors Lanka PLC has decided to focus on after sales revenue from service, repairs, and parts; the potential areas for growth even if restrictions are further tightened or extended.
"In order to minimize the impact, our focus will be on after sales revenue from service, repairs and parts, which has potential for growth in the event the import restrictions are extended.
This was disclosed by United Motors in a disclosure to the Colombo Stock Exchange (CSE) on 28 May.
"The Government's decision to restrict imports of most of the categories of vehicles we market could have a medium-term negative impact on our revenue from vehicle sales once our current stocks are exhausted," the company noted.
To prevent any possible foreign exchange crisis, the Government imposed import restrictions on non-essential items in mid-May; the beginning of the local spread of Covid-19. This was further expanded to include all imports except pharmaceuticals, fuel, and raw materials required for export purposes for three months until mid-July.
However, on 22 May, Prime Minister Mahinda Rajapaksa issued a gazette notification banning vehicle imports until further notice, leaving islandwide vehicle importers to wonder what would be their source of income once their current stocks are sold, as reported by The Sunday Morning Business yesterday (31 May).
According to the Vehicle Importers’ Association of Sri Lanka (VIASL), there are about 500 vehicle importers in Sri Lanka who import vehicles as their primary profession, and a ban of this nature would lead businesses to bankruptcy.
The company noted that the group recorded a turnover of Rs. 9.85 billion in the first quarter of this year, compared to Rs. 12.77 billion the previous year, as per the unaudited financial statements.
United Motors is engaged in importing and selling Mitsubishi and Fuso vehicles, spare parts, lubricants, after sales services, and related services. The company's segments include spare parts, vehicles, repairs and services, tyres, and lubricants and other services.
S.G. Wijesinghe is the Chairman of United Motors while C. Yatawara is the Group Chief Executive Officer. Orient Motor Company Ltd., UML Heavy Equipment Ltd., and Unimo Enterprises Ltd. are subsidiaries of United Motors Lanka.
- Madhusha Thavapalakumar
United Motors Head Office in Union Place[/caption]
Amidst prevailing vehicle import restrictions, United Motors Lanka PLC has decided to focus on after sales revenue from service, repairs, and parts; the potential areas for growth even if restrictions are further tightened or extended.
"In order to minimize the impact, our focus will be on after sales revenue from service, repairs and parts, which has potential for growth in the event the import restrictions are extended.
This was disclosed by United Motors in a disclosure to the Colombo Stock Exchange (CSE) on 28 May.
"The Government's decision to restrict imports of most of the categories of vehicles we market could have a medium-term negative impact on our revenue from vehicle sales once our current stocks are exhausted," the company noted.
To prevent any possible foreign exchange crisis, the Government imposed import restrictions on non-essential items in mid-May; the beginning of the local spread of Covid-19. This was further expanded to include all imports except pharmaceuticals, fuel, and raw materials required for export purposes for three months until mid-July.
However, on 22 May, Prime Minister Mahinda Rajapaksa issued a gazette notification banning vehicle imports until further notice, leaving islandwide vehicle importers to wonder what would be their source of income once their current stocks are sold, as reported by The Sunday Morning Business yesterday (31 May).
According to the Vehicle Importers’ Association of Sri Lanka (VIASL), there are about 500 vehicle importers in Sri Lanka who import vehicles as their primary profession, and a ban of this nature would lead businesses to bankruptcy.
The company noted that the group recorded a turnover of Rs. 9.85 billion in the first quarter of this year, compared to Rs. 12.77 billion the previous year, as per the unaudited financial statements.
United Motors is engaged in importing and selling Mitsubishi and Fuso vehicles, spare parts, lubricants, after sales services, and related services. The company's segments include spare parts, vehicles, repairs and services, tyres, and lubricants and other services.
S.G. Wijesinghe is the Chairman of United Motors while C. Yatawara is the Group Chief Executive Officer. Orient Motor Company Ltd., UML Heavy Equipment Ltd., and Unimo Enterprises Ltd. are subsidiaries of United Motors Lanka.
- Madhusha Thavapalakumar