Colombo – May 2025
Sri Lanka’s vehicle market is heating up once again, but this time, it’s not all good news for consumers.
Despite persistently high prices and complicated import regulations, demand for new vehicles continues to soar, according to Prasad Manage, President of the Vehicle Importers’ Association of Sri Lanka (VIASL). In a recent statement, Manage revealed that over 5,000 vehicles were imported into Sri Lanka over the past three months, and more than 3,000 units have already been sold, proving that demand remains high even amid financial pressure.
“There is still a strong appetite for vehicles, particularly among middle-income earners who are trying to buy what they can afford,” said Manage, noting that popular hybrid models like the Toyota Aqua and Prius are rarely seen in new imports due to manufacturing year restrictions and high taxes.
Adding to the strain are significant delays at the Colombo and Hambantota Ports, where the limited presence of customs officers has created a bottleneck. Importers claim it now takes at least 16 days to clear a single vehicle, resulting in steep demurrage fees, most of which go to foreign port operators. These additional costs are being passed on to buyers, further inflating already high vehicle prices.
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