ECONOMYNEXT – Sri Lanka’s vehicle registrations rose to 35,232 in July 2025, from 22,340 in June with motorcycles doubling to 26,171, which is around pre-crisis levels, an analysis of data by JB Securities, a Colombo-based brokerage shows.
Sri Lanka cut rates in 2020 with aggressive open market operations and banned over 3,000 imported goods as forex shortages emerged.
Two wheelers included a snumber assembled locally, with the sector operating before vehicle imports were allowed in February 2025.
Petrol engines accounted for 22,369, led by Bajaj with a 39 percent share, followed by TVS at 29 percent.
Electric two-wheeler sales totaled 3,802 units, with Yadea having the highest share of 2,473.
Motor car registrations were 2,748 in July, up from 51 in February.
SUVs crossovers, which have become popular over the years, were 3,299, up from 51 in February.
Cars and crossovers together are also now at around pre-crisis levels.
Three wheelers at 454 are far below pre-crisis levels when about 1800 vehicles were registered.
The central bank recently relaxed loan to value ratio of three wheelers from 25 percent to 50 percent.
“However, this remains lower than the 60 percent limit applied to larger and more expensive vehicles such as cars and SUVs (up from 50 percent),” JB Securities commented.
“From an equity standpoint, it is difficult to justify why lower-income buyers—the primary market for three-wheelers—are granted less access to credit when policy should aim to expand credit flows to this segment.”
Three-wheeler prices have risen sharply amid rupee depreciation and prohibitive taxes. (Colombo/Aug06/2025)