The Ceylon Chamber of Commerce has released its Motor Vehicle Industry Report for 2025/26, revealing that vehicle imports contributed nearly Rs. 900 billion in customs revenue as Sri Lanka's automotive sector rebounds following the resumption of imports.
The Ceylon Chamber of Commerce has published its flagship Motor Vehicle Industry Report 2025/26, the first comprehensive analysis of the sector in six years, as Sri Lanka's automotive industry navigates a period of renewed import activity and structural transformation. According to the report, imported vehicles generated Rs. 896.4 billion in customs taxes, demonstrating the significant fiscal contribution of the sector to government revenue.
The industry is undergoing a notable shift toward domestic value creation. Over 15 local assembly plants are now operating in the country, with policies requiring a minimum 20% domestic content in assembled vehicles. This move aims to increase local employment and reduce reliance on pure imports. Market indicators suggest strong momentum, with more than 327,000 new vehicles registered within the first six months of 2026, pointing to recovering consumer demand across the sector.
The report also contextualizes Sri Lanka's automotive trends within global developments. Worldwide, electric vehicles now comprise one in four new car sales, with global EV registrations exceeding 20 million units for the first time. The sector is also experiencing technological advancement, with artificial intelligence increasingly integrated into vehicle safety systems and development processes, reducing product development timelines by up to 50%.
The Chamber stated that the report serves as a resource for multiple stakeholders, including importers, vehicle assemblers, dealers, financial institutions, insurers, policymakers, and investors. The publication offers detailed data on vehicle registrations, fleet composition, market segmentation by brand and fuel type, alongside analysis of industry challenges and future opportunities for Sri Lanka's automotive market.
