SL to spend $1.5 bn on vehicles in 2026

SL spends US$ 2bn on vehicles in 2025  

The Governor of the Central Bank, Dr Nandalal Weerasinghe, said Sri Lanka spent around US$2.0 billion on vehicle imports in 2025 and could spend a further US$1.5 billion in 2026 as pent-up demand wanes.  

Sri Lankans imported a record 360,117 vehicles in 2025, following the reopening of the market in February 2025 after a five-year hiatus. 

The vehicle import market had been closed in March 2020 to conserve limited foreign exchange, as global activity came to a near standstill during the pandemic.  

Remittances slowed sharply, and the tourism industry was decimated, costing the country at least US$20 billion in foreign currency between 2020 and 2022.  

Despite the expected slowdown in 2026, the projected spending remains significant and could support stronger financial performance for vehicle importers in both calendar year 2026 and fiscal year 2027.  

Dr. Weerasinghe added that even with US$1.5 billion in spending, the impact on the external sector would not be substantial.  

A report by JB Securities noted that although vehicles are not manufactured in Sri Lanka, all the value added from import to sale to the end customer contributes to the country’s Gross Domestic Product.  

“This includes the importer’s profit margin, insurance premiums over the vehicle’s lifetime, net interest earned on financing, and associated fees such as registration, licensing, and number plates,” said JB Securities Managing Director and Economist Murtaza Jafferjee.