United Motors Lanka PLC (UML) has marked a significant financial recovery for the 2024/25 financial year, recording a profit of Rs. 73 million after years of losses, as Sri Lanka’s government lifted a long-standing ban on vehicle imports earlier this year.
Describing the policy shift as a “significant and positive development,” UML Chairperson Devaka Cooray said the company can now operate “without restrictions for the first time in five years,” unlocking fresh growth potential in the automotive sector.
The group reported revenue of Rs. 11.7 billion during the year, a 1.7% increase from Rs. 11.5 billion in the previous year. The return to profitability was driven by disciplined financial management, strategic realignment, and the strong performance of Dutch Lanka Trailers (DLT) Group, which UML acquired in 2023. DLT posted robust sales and showed strong after-sales and order pipeline growth.
The import ban, initially imposed in response to Sri Lanka’s foreign exchange crisis, was officially lifted in February by President and Finance Minister Anura Kumara Dissanayake. The move eased pressure on the sector and re-energised market expectations.
In response to the restrictions in recent years, UML shifted focus toward local vehicle assembly, tightened inventory control, and expanded service offerings. The group also reintroduced Mitsubishi-branded buses and trucks to the market and launched new vehicle models aimed at cost-conscious consumers.
UML continued to diversify its operations by expanding into the Maldives, supplying construction equipment and buses, and strengthening its presence in the lubricant and tyre segments. The company also plans to introduce electric vehicles in the coming year to align with global sustainability trends.
Cooray noted that pent-up demand, lower interest rates, and improved access to credit are likely to support future growth. “The resumption of imports has reignited optimism across our passenger and commercial vehicle segments,” he stated.
UML declared a final dividend of Rs. 1.50 per share for FY23/24. The company also restructured its Board and governance committees to strengthen oversight and align with best practices.