Thursday Aug 06, 2026
Thursday Aug 06, 2026
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The motor vehicle industry generated Rs.896.4 billion in Customs revenue while more than 327,000 new vehicles were registered during the first six months of 2026, underscoring the sector’s contribution to Government revenue and signs of market recovery, according to the Ceylon Chamber of Commerce’s Motor Vehicle Industry Report 2025/26.
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The report, released after a six-year hiatus following Sri Lanka’s suspension of motor vehicle imports, provides a comprehensive assessment of the industry’s economic contribution, policy developments, market trends and future outlook as imports resume.
According to the report, Sri Lanka’s automotive sector is gradually shifting from an import-driven model towards local value addition, with more than 15 vehicle assembly plants currently in operation and policies requiring a minimum 20% domestic content in locally assembled vehicles.
The Chamber said the publication examines the industry’s adaptation to the resumption of imports, evolving consumer preferences, technological advances and a changing regulatory environment, providing data and policy analysis for importers, assemblers, dealers, financial institutions, insurers, investors and policymakers.
The report also highlights structural changes in the global automotive industry, noting that one in four new cars sold worldwide is now electric, with electric vehicle sales surpassing 20 million units for the first time.
It further notes that artificial intelligence is reshaping vehicle development, from onboard safety systems to virtual vehicle testing, reducing development times by up to 50% while improving efficiency and innovation.
The report includes analysis of vehicle imports, registrations, fleet composition, ownership transfers and registration trends by brand, fuel type, cylinder capacity and district, alongside an assessment of industry challenges and emerging opportunities.
