The Vehicle Importers Association of Sri Lanka (VIASL) wants the blanket ban to be lifted and for the Government to consider introducing other restrictions including higher margin on LCs.
“Total suspension of imports isn’t the best course when the Government has the option of other restrictive measures such as higher margin on Letters of Credits as it was the case two years ago,” VIASL President Ranjan Peiris told the Daily FT.
VIASL is to submit a formal request for relaxation of the total ban to the Finance Ministry shortly.
Despite expressing concern, Peiris said importers understood the predicament of the Government, which was keen to preserve foreign reserves. VIASL however hopes the Government would consider relaxing the ban by end of next month.
Peiris also noted that the prices of all vehicles had increased by 10% to 15% as a result of the import restrictions imposed to prevent forex outflow and currency fluctuation. “With the depreciation of rupee, the prices of all vehicles including small vehicles less than 1000 engine capacity have increased,” he added.
As a result, most popular Japanese vehicles have gone up in prices by Rs. 200,000 to 500,000 at present. Accordingly the new prices are as follows: Toyota Vitz Rs. 4 million to Rs. 4.5 million, Toyota Passo Rs. 3.8 million to Rs. 4.2 million, Toyota Premio Rs. 9 million to Rs. 9.5 million, Toyota Axio Rs. 7.5 million to Rs. 7.8 million, Toyota Rise Rs. 7 million to Rs. 7.5 million, Toyota CHR Rs. 8 million to 8.5 million, Honda CRV Rs. 10.2 million to Rs. 10.25 million, Toyota Double Cab Rs. 10.2 million to Rs. 10.25 million and Suzuki Every Van Rs. 3.2 million to Rs. 3.5 million.
(FT)