Friday Jan 02, 2026
Friday Jan 02, 2026
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Sri Lanka’s vehicle import bill recovered in November to record the second-highest monthly level in 2025, rebounding from a moderation seen in October as the post-liberalisation surge continued to ease.
Central Bank of Sri Lanka (CBSL) data show vehicle imports rose to $ 281 million in November, up from $ 261 million in October, and second only to the September peak of $ 286 million. Cumulative vehicle imports reached $ 1.7 billion in the first 11 months of 2025.
After recording $ 194 million during January-April, monthly vehicle imports dipped to $ 118 million in May before picking up steadily from June onwards. Imports rose to $ 163 million in June, $ 193 million in July, and $ 249 million in August, before peaking in September. The October pullback was followed by a renewed increase in November, suggesting the October decline was temporary rather than a sustained slowdown.
The trend is consistent with the CBSL’s assessment that the sharp surge following the lifting of the five-year import suspension on 1 February 2025 is now tapering off. Speaking at the post-Monetary Policy Review media briefing in late November, CBSL Governor Dr. Nandalal Weerasinghe said Letters of Credit for vehicle imports, which spiked in July, had since declined, indicating a normalisation of demand.
“In July, August, and September, we saw a large number of imports. Now, the pent-up demand is over, and the demand has come down in November,” he said, adding that vehicle import prices are also easing, contributing to more stable market conditions.
In October, the CBSL Governor forecasted motor vehicle imports to reach $ 1.5 billion in 2025, up from the earlier projection of $ 1.2 billion.
Registration data underline the scale of the rebound following the reopening of imports. Total vehicle registrations reached 312,317 units in the year to end-November 2025. Motorcycles accounted for 223,423 units, while motor cars totalled 55,337 units. Three-wheelers recorded 14,234 registrations, land vehicles 8,377 units, dual purpose vehicles 6,044 units, goods transport vehicles 3,238 units, and buses 1,663 units.
Year-on-year (YoY) registration growth remained exceptionally high due to the low base during the import suspension period. Overall registrations rose 377% YoY. Three-wheeler registrations surged 16,646%, motor cars rose 3,517%, and buses increased 1,241%. Dual purpose vehicles grew 543%, motorcycles 291%, goods transport vehicles 187%, and land vehicles 82%.
The CBSL has said the easing of vehicle imports is helping to reduce pressure on foreign exchange outflows after the sharp third quarter increase. As pent-up demand is absorbed and prices adjust, authorities expect import volumes to settle at more sustainable levels, supporting broader external sector stability.
In November, the Committee on Public Finance (CoPF) flagged the fiscal impact of the surge in vehicle imports, noting that Government revenue in 2025 exceeded projections, largely due to higher-than-expected collections from vehicle import taxes. This revenue over-performance, the Committee observed, has provided additional room in shaping the 2026 fiscal framework.
However, the CoPF cautioned that revenue growth is likely to moderate in 2026, as vehicle imports, one of the key drivers of this year’s outturn, are expected to slow. The Committee’s report is due to be formally tabled in Parliament shortly.
In December, the International Monetary Fund (IMF) staff report noted that the primary balance in 2025 significantly out-performed, supported by revenue collection from motor vehicle imports and under-execution of capital spending. “Vehicle imports are expected to exceed the Fourth Review projections significantly ($ 1.8 billion vs. $ 1 billion),” the IMF said.
