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Astronomical reconditioned vehicle prices settled 

20 Oct 2021

BY Dinitha Rathnayake  The prices of reconditioned vehicles, which had increased substantially, in some cases by over 50%, have come down to a settled level at the moment, according to the Vehicle Importers’ Association of Sri Lanka (VIASL).  Speaking to The Morning, VIASL President Indika Sampath Merenchige confirmed that the massive increase in the prices of reconditioned vehicles has now been settled. “The Maruti Suzuki Wagon R price in 2018 was around Rs. 3.5 million, but recently, the market price was Rs. 6 million. Jeep models were at a price range of Rs. 15-20 million. All non-popular vehicle prices increased by 25%.”  He added that this price increase affects the economy adversely; however, since the prices are now settled, this would be the best time to buy a vehicle.  “If imports start, reconditioned vehicle prices would also rise but we will wait till the Budget declaration for 2022 to make a decision. The rapid increase of vehicle prices had a negative impact on the economy as well. A total of 75% of the vehicle dealers have closed down, and most sales are now done by third parties who do the buying and selling.”  As per the Gazette Extraordinary Notification Number 2176/19, dated 22 May 2020, which was published to amend the regulations that were stipulated by the Gazette Extraordinary Notification No. 2171/5, dated 16 April 2020, strict restrictions were placed on vehicle imports, in a bid to curb foreign exchange outflows amidst the Covid-19 pandemic. Following the ban on vehicle imports, the VIASL was asked to draft a plan that would not put pressure on the currency and safeguard foreign exchange reserves in the event of the importation of vehicles. The VIASL then requested the Government to allow it a certain quota of vehicle imports per annum as a compromise, with the aim of not driving importers out of business, while also not completely draining the Government’s coffers of valuable foreign exchange. However, this is yet to be met with a positive response. Meanwhile, it was reported that the Government has decided to continue its ban on the imports of vehicles for the next year as well, and has issued strict guidelines to all ministries on the preparation of their allocations for the 2022 Budget to be presented in November.


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