Why Exporting Luxury Cars to Sri Lanka is on the Rise? | GVE London – Blog

Sri Lanka went through a period of struggle not too long ago, with economic and social unrest making things complicated, to say the least. However, in recent years, things have been steadily improving, which is great news for the fine citizens of the country and for tourists wanting to visit. This, as a side note, is also exciting news for car enthusiasts within the country, as thanks to the efforts made by the government, luxury car exports have been on the rise. In this blog post, we’ll discuss this in more depth.

Why Does Sri Lanka Import So Many Vehicles?

One might not be aware of this but Sri Lanka has no manufacturing plants of its own in which cars are produced. Most vehicles are imported from India and Japan, making the country already dependent on imports. What has now changed is the growing interest in luxury cars, including high-performance vehicles such as sports cars, supercars, and even super utility vehicles.

What Drives This Growing Interest?

Car culture has always existed within the country, and social media naturally exposes people to the world of automobiles. Now, with economic conditions stabilising and the government actively working to improve road networks and infrastructure, the process of exporting cars to Sri Lanka has also become easier.

The country went through an economic crisis during COVID times and suffered a severe shortage of foreign reserves. Imports will help balance this out while also opening up an entirely new sector within the market that deals with imported vehicles, including repairs, servicing, dealerships, logistics, and more.

Read Also: Avoiding Common Pitfalls in Luxury Car Exporting

The Increase In Disposable Income

Sri Lanka makes a major chunk of its money through tourists, and tourists like to travel to this beautiful country in style. The same sentiment is found among its citizens, both the wealthy and the middle class, making it perhaps the greatest contributor to the rise of luxury car export to Sri Lanka; this desire to own luxury vehicles.

Now, more than ever before, this desire is close to coming to fruition as more Sri Lankans can afford luxury cars thanks to several economic factors such as low inflation rates, interest rates that are in their favour as well as the steady rise in its economy. 

Statistics show that in 2023, imported cars in the country were valued at a total of $26.5M, making it the 180th largest importer of cars in the world. Now, that may not jump out as impressive at first glance, but it shows the trajectory is upward for the country.

For supercar showroom like GVE London in the UK, there is some good news as the country that is the fastest-growing exporter to Sri Lanka for cars is none other than the United Kingdom between 2022 and 2023. They made $5.83M off exporting cars, a number that reached $6.35M in 2023.

Investment and Resale Value

Luxury cars more than fancy cars, they are an investment. This statement is true in pretty much every part of the world but its observable more so here and most other places. These investments hold their value, the particularly limited editions and high-performance variants. Some buyers recognise this and purchase them with the expectation that certain models will appreciate over time. The resale market in Sri Lanka is substantial, with strong demand for pre-owned luxury vehicles.

Conclusion

Currently, undeniably, the tax system remains a major hindrance to exporting luxury cars to Sri Lanka, as it significantly increases the price, often forcing citizens to pay twice the vehicle’s original cost. However, the government appears to be on the right path, gradually making policies more lenient—an indication that exports will likely continue to grow. If you’re a buyer looking to purchase a high-end vehicle and have it exported from the UK to Sri Lanka, contact our supercar showroom, GVE London. Furthermore, being enthusiasts, we not only perform the usual repairs and service but can work on customisation, PPF and detailing as well. To know more, hop on a call with us today!