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Vehicle prices to shoot up under import restrictions

26 Apr 2020

By Madhusha Thavapalakumar
Import restrictions put in place to prevent a foreign exchange crisis will make vehicle prices skyrocket over the coming months, according to the Vehicle Importers’ Association of Sri Lanka (VIASL), the representative body of automobile importers of the country. Accordingly, vehicles, especially fast-moving vehicles such as Suzuki Wagon R, Toyota Vitz, Toyota Axio, and Honda Vezel, would witness a price hike of Rs. 200,000–300,000 over the next two to three months. “After the curfew is removed, in another two to three months, there might be a demand for vehicles once again. But the issue is we have only a small number of high-demand vehicles and there is bound to be a rise in their prices,” VIASL President Indika Sampath Merenchige added. According to him, it is hard to predict the scale of demand they might have after the curfew, but he is certain that people who do not own a vehicle at the moment might feel the need to buy at least a small vehicle to distance themselves from the public. However, people might not want to replace their existing vehicles and go for newer models, due to the possibility of reduced cash flow in the coming months, he believes.
The Cabinet of Ministers last month decided to halt the importation of vehicles and nonessential goods, amidst the Covid-19 pandemic spread within the country. Early this month, they decided to suspend all imports into the country with the exceptions of pharmaceuticals, fuel, and selected raw materials that are used for export purposes.


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