The motor vehicle industry must fundamentally rethink its business strategies, said Chairman of the Ceylon Chamber of Commerce (CCC), Duminda Hulangamuwa.
He was speaking as the chief guest at the 104th Annual General Meeting (AGM) of the Ceylon Motor Traders Association (CMTA), one of South Asia’s oldest automotive associations.
From a policy perspective, it is unlikely that any future government will adopt a liberal approach to issue permits for vehicle imports on a concessionary basis as was done previously, he said.
Over 140 people representing the government sector, diplomatic missions and the private sector were present. “The exchange rate was artificially maintained at a subsidised level, from which we all benefited.
“This consumption led to the depletion of our reserves, a considerable portion of which was allocated to vehicle imports.
“Another area of concern was the malpractice of the grey market in the motor vehicle industry as seen recently with the foreign migrant worker scheme for electric vehicles,” he said.
He stressed the importance of strict regulation and action for those abusing the system.
Director, AMW Manufacturing, Virann de Zoysa, was elected as Chairman, Managing Director of Kia Motors Lanka, Andrew Perera was appointed Senior Vice Chairman and General Manager, David Peiris Motor Company Lakmal de Silva, was appointed Vice Chairman.
de Zoysa said, “Today as the automotive imports sector we find ourselves in the most challenging of circumstances with imports restricted for over four years. We maximised government revenue per dollar of import, which reached an average of $1.60 government revenue for every dollar of import by 2017.
“However, inconsistent policy changes in the recent past impacted this contribution negatively changing the sector’s attractiveness to the Government and possibly leading to the subsequent import restriction. This is indeed a misstep and something that must be addressed by working together with our stakeholders. I believe supporting the Government in sustainable policy and regulation is a key focus for CMTA,” he said.
Outgoing Chairman Director/ Chief Operating Officer of Stafford Motor Company, Charaka Perera said, “The Association has been strongly lobbying to regulate the vehicle importers, prior to opening the market. We have also proposed for vehicles to be subjected to an additional 140% duty, with a 20% quarterly reduction, in the additional duty. This will discourage over-stocking of vehicles for future sales, which will mitigate forex outflow.”
