May 19, Colombo (LNW): Sri Lanka has spent close to US$ 600 million on vehicle imports during the opening quarter of 2026, signalling a sharp increase in demand that could push the country’s annual import expenditure to record levels, according to Central Bank Governor Dr Nandalal Weerasinghe.
Speaking at a media briefing on Monday, the Governor said current import trends indicate that spending on vehicles may exceed US$ 2.4 billion by the end of the year if the pace continues unchanged. The projected figure would surpass the approximately US$ 2 billion spent on vehicle imports in 2025.
Dr Weerasinghe noted that authorities had initially expected import expenditure last year to remain between US$ 1.5 billion and US$ 1.7 billion. However, stronger-than-anticipated demand for motor vehicles led to a significant rise in imports, which in turn boosted government tax revenue through duties and levies collected on imported vehicles.
He further explained that the Ministry of Finance had anticipated a moderation in vehicle imports this year compared to 2025, but early data suggest that consumer demand remains robust despite prevailing economic pressures and financing costs.
According to the Governor, the sustained increase in imports has not yet posed a threat to government revenue targets, as higher customs duties and related taxes continue to strengthen state income. Nevertheless, economists are closely monitoring the trend amid concerns over its potential impact on foreign exchange outflows and the country’s trade balance.
Industry analysts believe pent-up demand, easing import restrictions and greater availability of financing facilities have contributed to the rapid rise in vehicle imports over recent months.