Importers say vehicle prices have fallen by about Rs. 1 million

Vehicle prices in the local market have dropped significantly, with some models falling by about Rs. 1 million, the Vehicle Importers Association of Lanka said.

The association’s President, Indika Sampath Merinchige, made the claim at a media briefing in Colombo on Wednesday (16 September), Hiru News reported.

The claim comes from the trade body itself rather than from an independent price survey, and no government agency has published figures confirming a market-wide fall. Hiru headlined its own report with the qualifier “allegedly”.

A reversal of the sector’s recent warnings

The statement runs against the direction importers themselves were forecasting only weeks ago.

In August, vehicle importers predicted prices could rise by between Rs. 500,000 and Rs. 5 million as a result of the 50% customs surcharge on specified imported vehicles — the context in which a Wayamba University economist said mafia influence behind price rises could not be ruled out.

In June, a vehicle importers’ body warned that used-vehicle prices were set to surge after a 15% Customs valuation reduction was removed, putting the likely increase on a Honda Vezel at around Rs. 2 million.

A note on attribution: that June warning came from the Vehicle Importers’ Association of Sri Lanka (VIASL), quoting Vice President Arosha Rodrigo. Thursday’s report names the Vehicle Importers Association of Lanka and Merinchige as its president. Whether these are the same body under an inconsistently rendered name, or two separate associations, is not clear from the reporting.

Financing and dealer activity is expanding regardless

Motor-trade investment has continued through the period. This week Union Bank signed an agreement with Toyota Lanka on vehicle leasing solutions — the third such dealer financing tie-up in six weeks — and David Pieris opened a BAIC showroom in Kandy.

Not reported

Hiru’s account does not say which models or segments fell, over what period the decline was measured, or what the association attributes it to. Nor does it give the association’s membership, any transaction data behind the figure, or a response from Customs or the Finance Ministry.