VIASL says about 100,000 employees risk losing their jobs due to vehicle imports ban

By Steve A. Morrell

The continuing ban on vehicle imports has jeopardized the jobs of around 100,000 employees directly involved in the industry and its ancillary services, the key association in the trade warned last week.

“In terms of indirect dependents on the industry, 400,000 persons face the risk of losing their livelihoods as the import ban will ultimately sound the death knell to the trade”, says Arosha Rodrigo, Hony. Secretary of the Vehicle Importers’ Association of Sri Lanka (VIASL).

The adverse effects of the ban will also spill over to tourism, health sector, general transport and allied services that function through the regular influx of vehicles, he told a news conference at Cinnamon Grand Hotel in Colombo.

“At the time the ban on vehicle imports was imposed in March 2020, we sought an appointment with the president to discuss the predicament we are in and the repercussions the ban has on the industry as a whole”, Rodrigo noted.

However, the president has so far not granted an appointment for a discussion, he said.

“Our efforts to meet the President’s Secretary, Dr. P. B. Jayasundara, for a discussion were also unsuccessful”, he remarked.

Rodrigo said that buyers who had secured bank loans to open LCs (Letters of Credit) are now in difficulty as they have to service the loans despite not being able to import vehicles. There are 140 imported vehicles lying in the Colombo port as clearing them was disallowed after the ban came into effect.

He said that the Finance Ministry’s solution to the ban is to assemble vehicles locally. This so-called solution cannot be implemented because world-renowned Japanese and European brands are being assembled in India, Taiwan and other South East Asian countries for export.

Even if Sri Lanka assemble vehicles, they would have to be for export in a competitive market and not for use locally, Rodrigo remarked.

Asked by the media whether there are vehicles being assembled in Sri Lanka at present, he said there is a roll out, but not in sufficient numbers to meet the demand in the local market.

He said before the ban was imposed, around 2,000 vehicles were imported per month.

The VIASL sought a meeting with the President to discuss the creation of a survival plan for the industry to meet their financial commitments, salaries of employees and overhead costs.

“We want to help the government’s efforts to control the outflow of foreign exchange, while ensuring that those who lose their jobs continue in employment to support their families”, Rodrigo added.