Indiscriminate import of vehicles harming economy
India produces vehicles in keeping with the needs of the country and the purchasing power of consumers. The indiscriminate import of Indian vehicles and sub-standard commodities affects the economy and environment, Chairman, Vehicle Importers Association of Sri Lanka (VIASL), Mahinda Sarathchandra told Sunday Observer Business. Singapore is a classic example of how Governments can regulate imports to suit their needs minimising damage to the environment, he said. “The policy of the Government has been to impose duties on imports to hide financial problems. Today, Sri Lanka’s roads are full of vehicles.
This is not in the best interests of the country’s future or its environment,” he said. He pointed out that tri-shaws alone number over one million. Sarathchandra attributed the proliferation of vehicles to the Government’s failure to operate an efficient passenger transport service.
“Vehicles in excess of actual needs have invaded the roads,” he said, claiming some sort of control over the import of vehicles is necessary. "If the Government is interested in earning a higher revenue through vehicle imports, a suitable road network has to be built. “Sub-standard vehicles have a direct bearing on the environment. Vehicles conducive to Sri Lanka’s economy and roads need be imported. Japanese vehicles are of superior quality,” he said. ‘Although hybrid vehicles are more energy-efficient, the damage it causes to the environment is enormous. Electric cars are no different to hybrid vehicles as its monthly energy bill comes to about Rs. 10,000,” he said, pointing out that there are not more than10 Lamborghini and Aston Martin cars in the country. “This is negligible compared to the fleet of other vehicles in the country. Reduction of fuel prices is no solution.
The country is going from bad to worse in view of the political system which seeks only temporary solutions for outstanding problems. While all previous rulers are not to blame, the people of this country continue to suffer due to lack of knowledge on the part of such rulers and their inability to cast aside the current political culture.
Sri Lanka should run its own affairs without being subservient to India, America, China or Britain. Sri Lankans will have to suffer in silence until it is reversed by a new set of rulers. The number of vehicles sold in Sri Lanka in May was 38,398, an increase of 82 percent compared to corresponding period of the previous year, amid historically low interest rates which boosted credit and discouraged savings.
Cars sold in May rose 205 percent to 5,999 units, an all-time record, sharply higher than the 4,500 units a month recorded during the credit bubble in 2011. Cars sold in Sri Lanka increased in the last quarter of 2011 as credit picked up, rising to 4,311 units in December from 2,411 units, mostly driven by hybrid vehicles.
In the January 2015 Budget taxes on hybrids were increased, reducing imports, but those of small cars were cut slightly, further boosting demand. Taxes on electric cars are also at a low rate of 5 percent due to State intervention leading to a surge in electric vehicles. The number of Maruti Suzuki cars sold rose from 325 units in November 2014 to 1,100 in December and 1,363 units in January and reached 2,512 units in May.
Today, the Maruti Alto is Sri Lanka’s bestselling car with 2,311 units being registered in May. Chinese Geely Panda cars sold under the brand Micro in Sri Lanka rose to 384 units in May from 325 a month earlier. Sales of SUVs were down to 682 units in May from 1,591 units in January though still up from 404 units a year earlier, mostly due a sharp fall in Honda Vezel hybrids to 308 units from a peak of 1,263 units in January.
The total number of hybrids dropped to 2,791 units in May 2015 from 4,320 in January. Sales of Zuzuki Wagon R, have begun to pick-up. Three-wheeler sales continued apace, with 10,996; units being sold apace, with 10,996; units being sold and registered in May 2015, up 91 percent from a year earlier.
