The latest budget proposals will result in the prices of reconditioned vehicles increasing in the coming weeks, the Vehicle Importers’ Association of Sri Lanka (VIAL) has warned.
According to The Morning, VIAL President Indika Sampath Merenchige said that vehicle importers were looking for a lifeline from the 2022 Budget, but it had not added any value in their favour.
Stating that vehicle prices have drastically increased over the last few months, he said although the VIASL believed that this was mainly due to the economics of demand and supply, it is evident that individuals from various other industries have entered the market of buying and selling used vehicles.
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He pointed out that as the 2022 Budget had not added any value in their favour, and they will continue to face the same problems as earlier.
Merenchige added that the prices of vehicles would be decided on supply and demand and that they do not know about the economic situation of the public.
The prices of reconditioned vehicles increased substantially in some cases by over 50% recently.
The Maruti Suzuki Wagon R price in 2018 was around Rs. 3.5 million but recently the market price was Rs. 6 million. Jeep models were at a price range of Rs. 15 million to Rs. 20 million and all non-popular vehicle prices increased by 25%,” he revealed.
Meanwhile, Finance Minister Basil Rajapaksarecently informed Parliament that Sri Lanka will release around 700 vehicles which have been seized by Customs after the applicable taxes are paid.
Sri Lanka has banned vehicle imports due to a foreign exchange crisis as a result of the coronavirus pandemic and second-hand car prices have soared amidst low interest rates.
courtesy NewsWire
