In a groundbreaking move, Sri Lanka’s Ideal Motors Ltd. has appointed Dilani Yatawaka as its new Group Managing Director and CEO, making her the first female business leader to head an automotive company in the country. Her leadership comes at a critical juncture, as Sri Lanka reopens vehicle imports after a five-year ban, threatening to derail the progress of the country’s burgeoning vehicle assembly sector.
Yatawaka, a seasoned finance and automotive professional with over 25 years of experience, steps into this pivotal role at a time when the local industry is voicing serious concerns over the government’s decision to lift the vehicle import ban without offering protective measures for domestic assemblers.
Industry leaders warn that the move, coupled with increased taxation, could have disastrous consequences for Sri Lanka’s rapidly growing automotive assembly sector.
The vehicle import ban, enforced in 2021 to conserve foreign exchange amid economic instability, led to a halt in the inflow of new vehicles. This has caused the country’s fleet to age significantly, making spare parts scarce and expensive.
With the lifting of the ban, the government aims to boost tax revenue, but industry stakeholders like Nalin Welgama, Founder of Ideal Motors, caution that the lack of safeguards could cripple local manufacturing efforts.
Under Welgama’s leadership, Ideal Motors partnered with India’s Mahindra and Mahindra to establish a strong local presence. Today, Sri Lanka hosts 17 assembly plants manufacturing a range of vehicles from SUVs to electric three-wheelers. Another 17 investors are poised to enter the market, reflecting the sector’s potential.
The sector supports over 15,000 jobs, highlighting its socio-economic importance. Experts warn that imposing “tax on tax” and allowing unrestricted imports could stifle this momentum unless a supportive policy framework is put in place. Welgama has advocated for a tax regime that favors locally assembled vehicles to ensure sustainability, attract investment, and support growth.
Amid these challenges, Yatawaka’s appointment signals a bold and strategic move. A graduate of St. Bridget’s Convent and a Fellow of multiple prestigious accounting bodies, she began her career at Ernst & Young before advancing to senior roles at Associated Motorways (AMW), where she led a successful restructuring post-acquisition by the UAE’s Al Futtaim Group.
Since joining Ideal Group in 2017, she has played a key role in steering the company through multiple crises, including the Easter Sunday attacks, the COVID-19 pandemic, and Sri Lanka’s economic collapse — all without layoffs or salary reductions. Her strategic overhaul of Mahindra’s aftermarket operations led to a notable sales surge in just five months.
Yatawaka’s leadership is marked by a commitment to shared growth and employee empowerment. “Her vision and resilience were instrumental in our turnaround,” said Welgama. “She is the right leader to take Ideal Motors into its next decade of growth.”
As Sri Lanka’s automotive industry faces an uncertain future, Yatawaka’s historic appointment provides both a fresh direction and a symbol of hope — for inclusive leadership and for a sustainable local industry amidst looming import pressures.
