Sri Lanka’s local automobile assembly industry is set to expand significantly, with projections to increase exports of vehicles, two-wheelers, and components from the current $800 million to $2 billion within five years. 

This growth is expected to create 45,000 direct jobs, according to a senior member of the Local Assemblers’ Association.

Drawing inspiration from nations like Morocco, Thailand, and South Africa, the industry leverages strategic advantages such as location, skilled labor, and government incentives. 

Sri Lanka’s Standard Operating Procedure (SOP) under the Ministry of Industries oversees over 17 assembly plants producing motorcars, SUVs, motorcycles, electric three-wheelers, and heavy trucks. 

These plants are supported by local manufacturers producing components like tyres, batteries, exhausts, and wiring systems.

The temporary ban on vehicle imports catalyzed the industry’s growth, creating over 10,000 indirect jobs and hiring over 5,000 technically skilled workers, including students and trainees. 

However, stakeholders warn that this progress is at risk due to potential unregulated imports of completely built units (CBUs), which could undermine local assemblies and their ecosystems.

Currently, over 20 global automotive brands, including Hyundai, Mahindra & Mahindra, TATA, and Hero, have partnered with local assemblers, contributing to a thriving below-250cc motorcycle market and bolstering Sri Lanka’s industrial reputation. 

The component manufacturing sector, which emerged from scratch, now meets international standards and attracts foreign investment, showcasing Sri Lanka’s growing technical capabilities.

The industry emphasizes its economic contributions, from boosting GDP and exports to creating jobs and fostering technological growth. 

Assemblers urge the government to ensure a fair and competitive tax policy between locally assembled units and CBU imports when the temporary suspension is lifted, safeguarding the sector’s progress and future potential.

Additionally, this industry has indirectly created more than 10,000 jobs over the past five years, establishing a complete ecosystem that risks being threatened if unregulated imports are allowed. They risk losing all the advancements made over this period. 

Although the SOP is a government policy to promote local industry, the new decision to open up completely built unit (CBU) imports will discourage more than 20 local assemblies of international brands operating in Sri Lanka.

Another crucial aspect is the component manufacturing sector, which has grown from nothing to one capable of developing components, scaling down manufacturing processes, and meeting international standards.

 “This growth has enabled major brands to set up operations in Sri Lanka, promoting the country’s technical capability on the world stage.”

 This has led to significant economic benefits, including job creation, GDP growth, and increased exports. Moreover, a thriving local assembly industry not only contributes to GDP and job creation but also enhances the country’s industrial image, attracts further foreign investments, and fosters technological and economic growth.

December 06, Colombo (LNW): The Ceylon Electricity Board (CEB) has confirmed that it will submit its proposal for revising electricity tariffs to the Public Utilities Commission of Sri Lanka (PUCSL) today (06).

CEB Chairman Dr. Thilak Siyambalapitiya assured that the submission would proceed as planned. This proposal aims to revise tariffs for the first half of 2025, with implementation expected from the third week of January.

Under the former government, electricity tariffs were revised quarterly. However, in 2023, three revisions were made, while the current government has limited these changes to twice annually.

The submission follows an earlier tariff revision proposal in October for implementation in December. This included a proposed reduction of approximately 6% in electricity tariffs. However, PUCSL flagged significant errors in the document and requested corrections.

Despite granting multiple extensions—from November 8 to November 22, and finally to today—the PUCSL has warned that it will independently proceed with the tariff revision if the corrected proposal is not submitted on time.

The UK-Sri Lanka Trade Mission, held from December 2-6 under the UK-funded SheTrades Commonwealth+ Program, is strengthening economic ties between the two nations while spotlighting women-led businesses. 

Co-organized by the International Trade Centre (ITC) and the Sri Lanka Export Development Board (EDB), the mission aims to enhance bilateral trade and expand UK market access for Sri Lankan women entrepreneurs in textiles, apparel, and processed agrifood sectors.

The initiative brings together 13 UK companies and 45 Sri Lankan women entrepreneurs, facilitating business-to-business (B2B) interactions and field visits across Colombo, Kurunegala, and Jaffna. 

The UK, Sri Lanka’s second-largest export market, saw an 8% rise in exports to $765.67 million during the first 10 months of 2024, highlighting the growing trade relationship.

The event’s opening in Colombo featured remarks by key figures, including British High Commissioner Andrew Patrick, Deputy Minister Chathuranga Abeysinghe, EDB Chairman Mangala Wijesinghe, and UN Resident Coordinator Marc-André Franche. 

High Commissioner Patrick emphasized the role of trade in empowering women and called for collective efforts to support women-led small and medium enterprises (SMEs) in global markets. Deputy Minister Abeysinghe lauded the initiative’s focus on geographic inclusivity, particularly in the northern region, and its potential to transform Sri Lanka’s economy.

EDB Chairman Wijesinghe highlighted the vital role of women entrepreneurs in fostering innovation and growth, stressing the need to address their underrepresentation in international trade. UN Resident Coordinator Franche echoed this sentiment, stating that achieving Sri Lanka’s export goals is impossible without prioritizing women entrepreneurs.

A panel discussion titled “Unlocking Sri Lanka’s Untapped Export Potential” featured experts from the UK Foreign Commonwealth and Development Office (FCDO), EDB, and private-sector leaders. The session explored strategies to enhance Sri Lankan exports, particularly from women-led businesses.

Preceding the B2B meetings, participants attended information sessions on sector overviews and export landscapes. Presentations covered the UK’s trade preferences, market entry requirements, and opportunities under the UK Developing Country Trading Scheme (DCTS).

Participants praised the initiative for fostering networking and knowledge-sharing. Khushnood Ahmed, Director of Hometex, described the mission as a positive step for women’s economic empowerment. Tayub Amjad of Zouk Group noted the value of the program in connecting with potential business partners.

The SheTrades Commonwealth+ Program, funded by the UK Government, promotes a gender-inclusive business ecosystem through policy advocacy, data insights, and partnerships with private and public sectors in Commonwealth countries and beyond. This mission underscores its commitment to empowering women entrepreneurs and driving inclusive economic growth.

December 06, Colombo (LNW): President Anura Kumara Dissanayake has instructed officials to implement a structured and transparent mechanism for issuing excise licences. These directives were delivered during a meeting held yesterday (5) with senior officials of the Excise Department at the Presidential Secretariat.

The President underscored the importance of adhering to the law, avoiding abuse of power, and ensuring timely tax collection. Addressing challenges in excise tax collection and associated irregularities, he emphasized revamping the system to improve efficiency and transparency. Suggestions included collecting overdue taxes, revoking licences of blacklisted institutions, and tackling entities that fail to collect taxes appropriately.

Discussions also highlighted shortcomings in current tax collection regulations and weaknesses in the recruitment system for excise officers. President Dissanayake expressed concerns over the public’s negative perception of the Excise Department and stressed the need to manage its operations to support the national economy effectively.

Additionally, officials briefed the President on production and packaging challenges, drawing attention to the harmful effects of artificial toddy on public health.

Excise Commissioner Rohana Senarathna, Deputy Commissioner R.V.S. Tissa Kumara, Assistant Commissioner M.J. De Silva, Chief Financial Officer G.A. Chandani, Chief Accountant W.R. Paranagama, and other senior officials were present at the meeting.