Vehicle registrations in Sri Lanka rose sharply in September, recording a 27 percent increase compared to August, according to data analyzed by Colombo-based brokerage J.B. Securities.
The number of registered vehicles climbed to 48,708 in September, reflecting a steady recovery in the auto market.
Car registrations rose from 2,329 to 4,268, while SUV and crossover registrations increased from 3,800 to 5,813 month-on-month. Crossover vehicles have now overtaken sedans and hatchbacks as the most popular segment among buyers.
Combined crossover and car registrations reached 10,081 in September, up from 6,137 in August, surpassing pre-crisis levels.
Motorcycle registrations also rose, reaching 32,626 in September, compared to 27,585 in August. Before the economic crisis, the country recorded around 30,000–35,000 motorcycle registrations per month.
Similarly, three-wheeler registrations climbed to 3,015 in September, up from 2,497 in August, though still below pre-crisis averages of about 10,000 units per month.
The price of a three-wheeler, which was around Rs. 500,000–600,000 in 2015, has now increased to about Rs. 2 million due to higher taxes and currency depreciation.
According to analysts, current vehicle imports are taking place without additional money printing, and there is no shortage of foreign exchange.
Cars continue to be taxed heavily, with nearly one-third of their retail price contributing to foreign exchange inflows.
Industry experts point out that vehicles remain a major source of government revenue, and prolonged restrictions on imports tend to reduce fiscal income and slow economic activity.
