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Sri Lanka vehicle registrations down in July

ECONOMYNEXT – Sri Lanka’s vehicle registrations fell to 28,572 in July down from 32,123 with motorcycle registration at 22,419 from 25,162 despite import controls, analysis of vehicle registry data shows.

Motor car registrations were down to 1,712 in July from 2,032 units a month earlier, while three wheeler registrations fell to 635 from 1,098 a month earlier, an analysis by JB Securities, a Colombo-based brokerage shows.

Van registrations fell to 736 from 800 a month earlier. Mini-trucks fell to 21 from 91, light trucks fell to 212 from 252, medium trucks fell to 314 from 293.

Three wheelers were down to 635 from 1,098 a month earlier.

Dealers still have some stocks of vehicles ordered before import controls were imposed.

Sri Lanka has halted vehicle imports after money printing in March and April de-stabilized a soft-peg with the US dollar but private credit has turned negative in May and June. When private credit is negative the currency strengthens.

There have been calls to reform the central bank, which was one of a series of similar agencies set up by the Latin American unit of the Federal Reserve, triggering similar problems, economic analysts say. (Colombo/Aug19/2020)