Sri Lanka is projected to spend more than USD 1.5 billion on vehicle imports this year, surpassing earlier estimates of USD 1.2 billion, says Central Bank Governor Dr. Nandalal Weerasinghe.
Speaking at the “Central Bank’s Policy Agenda for 2025 and Beyond” event in Colombo, he attributed the surge to strong post-ban demand following the lifting of import restrictions.
Dr. Weerasinghe noted that the vehicle import boom had significantly boosted government revenue, with total vehicle-related revenue expected to reach Rs. 450 billion by end-2025.
However, he said that demand has begun to stabilise and may moderate next year, potentially leading to a decline in revenue from this segment.
The Central Bank of Sri Lanka (CBSL) disclosed that financial institutions have lent over Rs. 1.16 trillion for vehicle-related loans, primarily in the form of leasing and mortgage-backed lending.
CBSL Deputy Governor J.P.R. Karunaratne revealed that the Licensed Finance Company (LFC) sector’s total gross loans and advances amounted to Rs. 1,837 billion during the first half of 2025, with 63.2% of that portfolio tied to vehicle-backed loans.
The Policy Agenda 2025 report also identified gold-backed lending as the second-largest loan category within the sector, representing 19.4% of total lending, underscoring the continued reliance on collateralised credit across financial markets.
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