Mumbai: Three years after its financial crisis, Sri Lanka is set to re-open its doors for the imports of commercial vehicles, construction equipment, and electric vehicle (EV) makers, starting September 2023, Finance Minister Shehan Semasinghe said on the sidelines of the Invest Sri Lanka forum.
The nation may progressively open doors to two-wheeler makers in 2024.
After the socio-economic unrest that unravelled a financial crisis in the country, Sri Lanka banned imports of all automobiles in the nation to conserve its finances. The country will resume imports of fully built commercial vehicles and vehicle kits, including those for light commercial vehicles, trucks, and buses.
Semasinghe said that the Indian auto industry, especially manufacturers such as Tata Motors, TVS Motor, Ashok Leyland, and Bajaj Group, has been deeply engaged with the Sri Lankan manufacturing sector and the country ‘completely recognises their importance’.
India has re-extended a credit line of US$ 1 billion to Sri Lanka, which has enabled the country to buy goods and services from India.
“We want the Indian auto industry along with the electric vehicle OEMs to play a key role in the decarbonisation of the Sri Lankan economy, for which we are planning to extend special incentives on a case-by-case to reduce its reliance on fossil fuels as a top priority.
This development is likely to give a shot in the arm to Mahindra Electric Mobility Limited and other EV makers like Okaya EV which have expressed interest and formed alliances with Sri Lankan counterparts.
Mahindra Electric Mobility Limited has signed a distribution Agreement with Sri Lankan SLA Mobility (SLAML) for electric 3-wheelers, with the entity also looking for localization or CKD operations in Sri Lanka, on introducing its EVs to the country.
Okaya EV Managing Director Anshul Gupta expressed his support for the move and said, “We appreciate the support from the Sri Lankan government for a complete knock-down (CKD) assembly and are hopeful that their norms offer a substantial tax holiday that can serve as a strong incentive to establish Sri Lanka as a hub for sustainable transportation solutions.”
While Okaya EV has announced its foray into Sri Lanka and has inaugurated its first showroom in Colombo, Mahindra Electric Mobility Limited plans to export the electric Treo range and the Zor Grand vehicles to the Southern neighbour.
Auto Exports to Sri Lanka, which constituted close to Rs. 2,377 crores by FY20, dropped by 60% to Rs. 874 crores in FY22, as per industry analysts.
Two-wheelers have been hit the most, with exports declining from Rs 1,244 crore in FY20 to a meagre Rs 4 crore.
When asked about restarting the two-wheeler imports along with passenger car imports, Semasinghe said that this would be possible only in the calendar year 2024, as for three years the island nation has not imported a single automobile.
“With the revival of the tourist sector, the country’s travel and tourism operators are also looking to refresh their old vehicles.”
With the island nation slowly coming out of its economic peril-like situation the government lifted import restrictions on 286 items, including auto components, but the import of cars and two-wheelers continues to be banned. (www.autocarpro.in)
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Now I am going away to do my breakfast, once having my breakfast
coming yet again to read additional news.