Industry analysts predict a rapid cooling of Sri Lanka’s overheated second-hand car market following the partial relaxation of import controls for tourism. The shift became evident as brand new van prices, particularly for models permitted in the tourism sector, were advertised significantly below the asking prices for used vehicles. Toyota Lanka’s advertisement offering the new HiAce passenger van at an all-inclusive price of 16 million rupees, less than half the 32.5 million rupees asked for a five-year-old HiAce with 48,000 kilometers, surprised dealers who had been pricing their used vans at much higher rates.
The disparity in prices signals a potential correction in the market, with HiAce vans of varying ages still advertised between 14 to 23 million rupees online. Importantly, the new van prices include substantial taxes, around 7.0 million rupees, making them more attractive to potential buyers. Moreover, factors such as the recent appreciation of the Sri Lankan rupee against the yen and speculation about potential relaxations on vehicle imports ahead of the upcoming presidential elections are expected to further impact prices, prompting some buyers to adopt a cautious approach while waiting for potential market shifts.