Sri Lanka vehicle imports have exceeded 1.2 billion dollars in the first nine months of 2025, with a sharp increase in September adding pressure to the country’s trade balance.
Vehicle imports surge in September, pushing Sri Lanka’s trade gap higher
Sri Lanka vehicle imports have seen a significant rise in 2025, reaching more than 1.2 billion US dollars from January to September. Official data shows that in September alone, vehicle imports amounted to 286 million dollars, reflecting strong consumer and commercial demand following the removal of restrictions. The increase in Sri Lanka vehicle imports has contributed to a wider merchandise account deficit, raising concerns about external stability and foreign currency outflows.
Vehicle imports were previously restricted in 2020 to protect dwindling foreign reserves. However, with the resumption of imports in 2025, both personal and commercial vehicle demand has accelerated. This renewed activity in Sri Lanka vehicle imports has helped revive sectors such as automobile trade, logistics and banking, but it has also added strain on foreign exchange reserves at a time when the economy remains cautious over external balances.
Economists note that higher vehicle imports often coincide with rising demand for fuel, spare parts and credit, intensifying pressure on the trade deficit. The surge in vehicle imports in September is one of the key factors behind the widening merchandise gap, as overall imports outpaced export earnings. Analysts also warn that unless vehicle imports are balanced with sufficient foreign exchange inflows, the rupee could face renewed depreciation risks.
The government and central bank are now closely monitoring the impact of Sri Lanka vehicle imports on the economy. While allowing imports has supported consumer demand and business activity, policymakers may need to manage credit growth and import financing to protect reserves. Maintaining a balance between economic recovery and external sector stability will be essential in the coming months.