By: Staff Writer
Colombo (LNW): Sri Lanka’s wholesale and retail sale rebounded while transport of Goods, Warehousing and Passenger Services recorded up and down moderate growth in value added terms, the recent auditor general’s report revealed.
The wholesale and retail trade activities expanded by 1.3 percent in the first half of 2022, compared to 2.5 percent growth in the same period of 2021.
Sri Lanka’s wholesale businesses including supermarkets are bracing for the impact of higher taxes from the recent budget which are effective in January.
After the increase of a new 15 per cent Value Added Tax (VAT), supermarkets and wholesalers and retailers will eventually pass the cost to consumers, traders and industry sources said.
The wholesale trade is still awaiting further clarification on the taxes to measure the extent of the impact on profitability,
Several members of Wholesale Traders Association said that they have no alternative other than increasing the wholesale price of goods as they cannot avoid paying higher taxes.
The Sri Lanka Retailers’ Association (SLRA), the apex body of organised retail in Sri Lanka, has raised growing concern about the current standing of the local retail sector.
“The local retail sector accounts for more than 30% of the national GDP and 14% of direct employment in the workforce.
“The Social Security levy charged on basic essential items has increased the burden on consumers. SLRA recommends excluding the levy on basic essentials to provide relief to the consumers.
SLRA urges the government and authorities to set up a system to facilitate the continuation of the retail sector business through a planned set of actions.
A 100% robust framework based on monthly availability that could be considered to rejuvenate the retail sector would ensure imports and provide a means of managing the current uncertainty in the market. The SLRA also advocates transparency on how retailers should operate amidst the current crisis.
The transport sector posted a negative growth of 0.9 percent in the first half of 2022, compared to the 8.9 percent expansion in the first half of 2021, the report indicated.
The total number of new vehicle registrations dipped considerably by 34.6 percent to 16,690 in the first nine months of 2022 from 25,505 in the same period of 2021.
This was mainly due to the import restrictions of vehicles imposed by the government in order to manage the forex liquidity, the AG report observed.
The registration of motor cars declined by 60.7 percent in the first nine months of 2022, while registration of three wheelers, goods transport vehicles and land vehicles dropped by 98.5 percent, 48.7 percent and 43.9 percent,respectively during the period, Motor traffic department dat showed
However, registration of motorcycles, buses and dual purpose vehicles increased by 17.2 percent, 13.9 percent and 13.8 percent, respectively during the first nine months of 2022.
Total containers handled in the first nine months of 2022 decreased by 2.5 percent to 5.2 million Twenty-foot Equivalent Units (TEUs), compared to 5.4 million TEUs in the same period of 2021.
Containers handled for domestic, transshipment and re-stowing decreased by 11.0 percent, 0.8 percent and 0.4 percent, respectively in the first nine months of 2022.
The total number of cargo handled at the Colombo port also decreased by 4.7 percent to 78.4 million metric tons in the first nine months of 2022, compared to 82.2 million metric tons in the same period of 2021.
