Exporting old vehicles can help Sri Lanka bring in newer models, says GFSLBC

Colombo, August 8 (Daily Mirror) - If Sri Lanka exports old vehicles to other countries at reasonable prices and uses the profits to reduce import taxes on new vehicles, the government can effectively phase out old vehicles and bring in newer models, said Sajeev Kshathriya Rajaputhra, General Secretary of the Global Federation of Sri Lankan Business Council (GFSLBC).

He highlighted that a 300 percent tax is currently imposed on vehicle imports, while the local resale market inflates prices to three times the original purchase price.

“Therefore, it is possible to issue permits to exporters allowing them to recover their losses by deducting the amount from the duty on their next vehicle import,” Rajaputhra explained.

“Sri Lanka and Ethiopia are the only two countries where vehicles can be sold for more than their purchase price even after years of use. Eventually, these vehicles become unusable and turn into piles of metal. The question is, what will happen to the value of those vehicles that people bought, he asked.

Rajaputhra added that if a vehicle is considered an asset, its value should naturally appreciate. 

“However, in Sri Lanka, this value has increased artificially. The price should reflect the actual worth of the vehicle, not be unfairly inflated.”

He also addressed ongoing discussions about removing old vehicles from Sri Lanka. 

“Although current and past governments have considered ideas, they never consulted us. We shared our proposals with the business council in Japan, where many Sri Lankan entrepreneurs involved in vehicle-related businesses live and work,” he said.

Rajaputhra noted the difficulty in covering the cost of vehicles bought from other countries, even if Sri Lanka exports old vehicles. 

“If we export old vehicles at reasonable prices, the profits can help reduce import taxes on new vehicles, allowing us to remove old vehicles and bring in new ones,” he added.

The GFSLBC has made three key requests to the government:

• To give a clear mandate to the global federation
• To create a global branch within the GFSLBC
• To provide direct access to the President’s Secretariat to facilitate public-private sector collaboration.

“We are also waiting for an appointment with the President to discuss these matters,” Rajaputhra said. “As Sri Lankan businesspeople living abroad, we want to see our country become a first-world nation. We have much to offer, and all we ask is for the government to connect and work with us.”

Considering the current challenges in Sri Lanka, Rajaputhra emphasised that the GFSLBC understands the business models best suited for the country. 

“We have extensive experience and knowledge of the latest business practices. There is a significant gap between the Sri Lankan government and the business community living overseas. We urge the government to leverage our expertise to help Sri Lanka grow,” he concluded. Pic by Nisal Baduge