Sri Lanka's Vehicle Market Soars with Indian Imports, Ultra-Luxury Cars Contribute to Revenue

Sri Lanka's vehicle registrations increased to 55,000 in January, driven by a surge in Indian imports. Two-wheelers led registrations, while luxury cars like Lamborghini and Rolls-Royce highlighted the high-end market, contributing significantly to tax revenue despite low volumes.

The Sri Lankan vehicle market witnessed an upswing in January, with registrations climbing to 55,000 from December's 48,000, driven by a notable 15 percent surge in imports from India, according to an analysis by JB Securities.

Two-wheelers dominated new registrations at 24,163 units, while Indian imports accounted for 30,766 units, showcasing India's impact on Sri Lanka's vehicle landscape. Although car registrations decreased to 4,648 units from December's 5,007, three-wheelers saw an increase to 3,448 units.

The high-end vehicle segment displayed fascinating trends, with brands like Maybach, Porsche, and Bentley contributing sizable tax revenues. Ultra-luxury vehicles, despite their minimal volumes, presented meaningful fiscal support, underscoring the significant role of luxury car taxations in public revenue.

(With inputs from agencies.)