USED JAPANESE CAR IMPORTS TO SRI LANKA SET FOR RECORD HIGH

Sri Lanka's imports of used Japanese vehicles are on pace to reach an all-time high by the end of 2025, with $318 million in imports recorded in the first six months of the year. This figure, reported by Nikkei Asia based on data from Japan's Ministry of Finance, already surpasses the $279 million imported for the entire year of 2019.

The first-half total for 2025 is second only to the record $450 million tally from the first half of 2018.Itochu Research Institute executive fellow Sanshiro Fukao told Nikkei Asia: “Although China maintains strong influence in Sri Lanka, Japanese used cars will continue to be the vehicle of choice over Chinese EVs as people think about asset value.”

The effects of this pickup in Sri Lanka’s used car market are seen impacting Japan’s domestic market as well.

A report from Japanese used car marketplace Kuruma Erabi indicated that auction prices have risen for many models in the Japanese market since the ban was lifted, including Toyota’s Land Cruiser full-size SUV, a popular model in Sri Lanka.

Fukao argued that although minicars and other small models were the most prevalent for exports to Sri Lanka, popularity is shifting to bigger models and EVs.

He said that if trade-in values of those vehicles rise in Japan, it “could stimulate demand for car replacement in Japan’s market as well.”