Business Times

Vehicle imports policy to hurt a million people

By Sunimalee Dias

A million Sri Lankans are likely to be affected if government go ahead with plans to reduce the age of used vehicle imports to one year from a current two years, vehicle importers said. Vehicle Importers Association President Yoga Perera said if this new rule is implemented it would result in a possible closure of car sales outlets and reduction of staff.

Currently there are around 750,000 employees directly and indirectly involved in the vehicle industry in the country and with the addition of their dependants the figure stands at nearly one million people involved in the sector, he said.

He noted that this could cause at least 50% to go unemployed as other private companies wouldl be unable to handle the excess number of workers. It was pointed out that a similar situation prevailed in 2008 when most were compelled to close down their vehicle sales outlets, especially the small and medium scale enterprises due to the high duty imposed.

He noted that this situation is likely to repeat itself if the duty on vehicle imports and the age limit of imported used cars is reduced to one year. A number of people are currently employed in this industry, which witnessed a boom in 2009 when the duty was relaxed. In this respect, individuals engaged in the paint, rent-a-car, wharfs, clearing agents, spare parts sector among a number of other jobs likely to be affected if the increased duty is imposed and if the age limit of the vehicles is reduced to one year, Mr. Perera said.

Further, the industry points out that work at garages will also drop and thereby impact on the workforce at these places as well. Some complained that while they were knowledgeable in running only this type of business they would definitely have to reduce the number of workers as they would be compelled to continue limited operations.

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