Higher taxes hit Sri Lanka motor sector earnings
ECONOMYNEXT – Earnings of Sri Lanka’s motor sector companies fell 56 percent to Rs363 million in the first quarter of 2016 from a year as the flood of vehicle imports slowed down with increased import taxes, Capital Alliance Securities said.
The motors sector on the Colombo Stock Exchange was the sector that suffered the most during the quarter, stockbrokers said in a research report.
There was a higher contribution to sector earnings from United Motors, which accounted for 62 percent of sector earnings.
“Sector earnings fell due to the increase in taxes on vehicle imports, as well as 2015 being a high base year,” it said.
The 2016 first quarter trailing 12-month earnings were Rs3.2 billion, up 28 percent from a year ago, Capital Alliance Securities said.
Vehicle imports have been subdued since early this year compared with the same period in 2015 after an import tax hike and credit restrictions.
(Colombo/June 14 2016)