Vehicle imports may exceed US$1.5 billion this year, says Central Bank Governor

Sri Lanka is likely to spend over US$1.5 billion on vehicle imports this year, according to Central Bank Governor Dr. Nandalal Weerasinghe.

This expenditure exceeds the previously anticipated figure of US$1.2 billion, mainly due to the high demand that arose following the removal of the import ban.

Dr. Weerasinghe expressed these views at the "Central Bank's Policy Agenda for 2025 and Beyond" programme held in Colombo.

It is expected that the total revenue generated from these vehicle imports will reach Rs. 450 billion by the end of 2025, providing a significant contribution to the government's annual revenue targets.

However, Dr. Weerasinghe stated that while the demand for vehicles initially surged, it is now showing signs of stabilisation, which could lead to a decline in revenue from this sector next year.

Meanwhile, the Central Bank revealed that financial institutions have lent over Rs. 1.16 trillion to individuals for vehicle imports.

Central Bank Deputy Governor J.P. Karunaratne stated that the majority of these loans are in the form of vehicle leasing and mortgage-backed loans.

This also highlights the situation in the Licensed Finance Companies (LFC) sector. In the first half of 2025, the total gross loans and advances in this sector amounted to Rs. 1,837 billion, with 63.2% comprising vehicle mortgage loans.

According to the Central Bank report, the second largest loan category in this sector is gold-backed lending, which accounts for 19.4% of total lending.