Traffic Jam

Honda Motor’s Sri Lankan agent is investing Rs. 100 mn to increase its services capacity, but says taxes and duties could put the breaks on sales growth. Honda Motor’s Sri Lankan agent is investing Rs. 100 mn to increase its services capacity, but says taxes and duties could put the breaks on sales growth. Stafford Motors on Monday said it is implementing an IFS Enterprise Resource Planning solution to streamline its supply chain operations, optimize inventory management and improve overall productivity.

A Rs. 45 mn service station and the automation and improvements to its motorbike arm will however take most of the Rs. 100 million investment.

Concerns are however that the government’s decision to up excise duty in its budget for 2005 on motorcars from 30 percent to as much as 60 percent with engines over 1800 CC.

Stafford Motors chief Dr. Kalinga Kaluperuma on Monday said that the Honda Civic – it’s current best seller, will only come in 1800 CC and above ranges with its 2006 release.

The Honda Civic is now within in the 1500 CC engine range, where excise duties are at 40 percent.

Dr. Kaluperuma says when the 1800 CC Civic c