Some 20,000 unregistered vehicles were idling at show rooms as a result of the anti-corona lockdown measures, it has been revealed.
“Around 18,000-20,000 unregistered, brand new and reconditioned vehicles are currently just parked at showrooms islandwide,” President of the Vehicle Importers Association of Sri Lanka, Ranjan Peiris told Newswire.
Peiris lamenting the severe negative impact the Covid-19 pandemic has had on the formal motor trade industry, said that over 25,000 vehicle importers were facing serious financial hardships such as overdue loan repayments, inability to clear vehicles at the ports as well as an increase in vehicle prices by 10%-15%.
“Of around 6000 vehicles that were unloaded at the Hambantota Port we have been able to clear most but there about 1500 vehicles still remaining as importers have been unable to procure the Short Term Loans (STL) required,” Peiris said.
He went on to say that they would be writing to Prime Minister and Minister of Finance, Mahinda Rajapaksa, to discuss easing of restrictions imposed on the importation of vehicles.
“We are not asking for import ban to be lifted. Not at all. We are simply asking to ease the restriction to allow the importation of vehicles at higher margins on Letters of Credit. The government can decide on how the margin is, whether 100%, 200% or more,” Peiris said noting that this would allow more government control of vehicle imports and foreign exchange outflows.