The Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, says vehicle imports are currently declining and that next year is expected to be a normal year for imports, including vehicles.
He pointed out that with the relaxation of import restrictions, the previously high demand has now begun to ease.
The CBSL Governor made the remarks while speaking at a press briefing held yesterday (26) in connection with the final monetary policy review for 2025
“After vehicle imports were opened, in July, there was a sudden increase in the opening of Letters of Credit (LCs), which led to a rise in vehicle imports. But now we see that the LC data is rapidly falling,” he said.
Comparing the data from July, August, and September, he noted that vehicle imports had sharply declined in November and December.
“Vehicle prices, too, in some way, are slowing down in November and December. We see the market stabilizing, with one reason being that demand has reached a certain equilibrium. Going forward, the pent‑up demand has already been absorbed, and now things are stabilizing, with vehicle prices also coming down.”
“Vehicle imports are now balancing. They were higher than we expected at the beginning of the year, especially in July, August, and September. But we think vehicle imports will decline over the next two months,” Dr. Weerasinghe said.
“Motor vehicle imports are now stabilizing. They were slightly higher than we anticipated at the start of the year. Because of the demand in July, a large number of LCs were opened in July, August, and September. Now the number of LCs is falling, and this will be reflected in the coming months. Demand for imports, especially motor vehicles, will decline,” he further explained.
When asked by journalists whether a forecast had been made for vehicle imports next year, he said, “We have not made a forecast for next year yet. We will do so at the next review. At present, we believe the pent‑up demand has already been absorbed. Now it is declining towards a normal level. Next year will be a normal year for imports, including vehicles. It is still too early to predict exact figures. We have some projections for monetary policy work, but a clearer picture will emerge once this year concludes.” (Newswire)