More than 15 vehicle assembly plants are now operating in Sri Lanka, supported by a policy requiring locally assembled vehicles to contain at least 20 percent domestic content, according to the Ceylon Chamber of Commerce’s Motor Vehicle Industry Report 2025/26.
The finding points to a shift in an industry long built around imports and distribution. Policy attention is moving towards building vehicles locally, with the aim of creating manufacturing jobs, deepening industrial capacity and keeping more value inside the economy, the Daily Mirror reported.
Imports remain central to the sector. More than 327,000 new vehicles were registered in the first six months of 2026 as demand recovered following the easing of import restrictions, and motor vehicle imports generated Rs.896.4 billion in customs taxes over that period — a reminder of how heavily government revenue leans on the trade.
First report in six years
The Chamber revived the report after a six-year gap, a break that tracked Sri Lanka’s suspension of vehicle imports. Its return reflects the reopening of the market following the lifting of those restrictions.
The 2025/26 edition covers the industry’s economic contribution, policy developments, vehicle imports and registrations, ownership trends, global automotive developments and the growing role of artificial intelligence in the sector. It is aimed at importers, assemblers, dealers, financial institutions, insurers, investors and policymakers.
Global backdrop
The report sets the local picture against a global industry in transition. Electric vehicles now account for one in every four new cars sold worldwide, with annual EV sales passing 20 million units for the first time.
Artificial intelligence is also reshaping how vehicles are developed, cutting design and testing timelines by as much as 50 percent and improving efficiency across the production cycle, according to the report.
Source: Daily Mirror.
