• Finance and Transport Ministries open to further amendments
• Three-Wheeler associations push for petrol models in SOP list

The standard operating procedure (SOP) for the automobile manufacturing/assembling industry and the automobile components manufacturing industry of Sri Lanka, introduced in 2021 under the Gotabaya Rajapaksa government, is currently under revision, according to the Ministry of Industries.

Speaking to The Daily Morning Business, Sector Chairperson of the Ministry of Industries, Advisor to the Secretary of the Presidential Task Force for Economic Revival and Poverty Alleviation, and Advisor to the Export Development Board, Dimantha Jayawardena, said that all industry stakeholders are involved in the comprehensive revision.

Both government and public sector stakeholders are participating in the process, he noted.

“I think it will be finalised within the next two months,” he added.

“Usually, it has to be amended every five years, but there were a couple of technical issues that arose within different government organisations. Because of that, we are trying to revise it and make it much more investor-friendly,” Jayawardena explained.

The SOP, initially enacted on 11 January, 2021, was crafted by the Ministry of Industries’ Policy Development Division in collaboration with key stakeholders, including representatives from the automobile assembly and component manufacturing industries, as well as experts from both the public and private sectors.

The SOP was designed to support the growth of Sri Lanka’s domestic automobile industry, which is still in its early stages, despite a well-established component manufacturing sector.

The SOP serves as a comprehensive guideline for the industry, addressing all aspects from registration to safety and quality standards.

It also includes regulations like the conditions of the excise duty concession matrix, which incentivises the production of vehicles with a high local value addition (LVA) percentage, particularly focusing on motorcycles and electric three-wheelers.

Nevertheless, the amendments are being made to the SOP list at a time when the three-wheeler owner associations are raising concerns about the exclusion of petrol three-wheelers from the SOPs, arguing that they should be included due to the high cost of electric models, which are unaffordable for most Sri Lankans.

Secretary of the National Union of Three Wheeler Drivers and Industry Workers Union L. Rohana Perera asked, “if other petrol vehicles can be manufactured or assembled in Sri Lanka, why aren’t petrol three-wheelers allowed as well?”

They believe that petrol three-wheelers should be considered alongside other vehicles in the manufacturing and assembly regulations.

The Daily Morning Business also learned that multiple proposals have been submitted by various stakeholders, urging the inclusion of petrol three-wheelers in the revised SOP list.

In responding to the concerns raised by three-wheelers owners’ associations, the Ministry of Finance announced its openness to considering amendments to the SOP.

Speaking to The Daily Morning Business, State Finance Minister Shehan Semasinghe indicated that if an official request is made by concerned parties, the government would review it in line with current policies.

Semasinghe acknowledged that the SOP was formulated during a period of significant import restrictions and emphasised the government’s willingness to revise it if necessary.

“If any changes are needed, we are prepared to review and implement them, provided they align with the government’s policies. Concerned parties should submit their requests in writing, and we will consider any necessary adjustments,” he said.

Semasinghe also noted that a committee has been appointed to review vehicle import restrictions and other related policies.

“As we continue to stabilise our economy, certain protective measures for local producers will remain in place, but we are ready to adapt where necessary,” he added.

Furthermore, Transport Ministry Secretary Ranjith Rubasinghe stated that further relaxations to the current SOP would be considered based on requests submitted to the Ministry.