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Sri Lanka Automotive Component Manufacturers welcome budget proposals

Nov 19, 2020 (LBO) – The Sri Lanka Automotive Component Manufacturers’ Association has welcomed the 2021 Budget describing it as a ‘new era for local automotive component manufacturers’.

In appreciation of the government’s efforts to encourage entrepreneurs in the automobile industry engaged in vehicle assembly using locally manufactured brand-new auto components, Dimantha Jayawardena, President of the Sri Lanka Automotive Component Manufacturers’ Association said, the 2021 Budget will implement the following Policies:

  • Local automotive assembly using 30% of locally manufactured brand-new parts.
  • Promotion of Local Automotive Products by giving them preference in Government Tenders (Domestic Preference).


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  • Eliminate unfair competition for Local Auto Manufacturers by preventing under-invoicing by importers.

SLACMA has submitted a 10-year master-plan to the Finance Ministry as a crucial step to take the Local Assembly Industry and Component Supply to the next level, as they seek quality certification from their regional counterparts to boost growth.

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The association reiterated the role of the Ministry of Finance under the Prime Minister, Ministry of Industry and Supply Chain under Wimal Weerawansa and Dilum Amunugama, MP, the State Minister of Vehicle Regulation, Passenger Transport Services, Railway Carriages, and Automobile Industries, the Department of Motor Traffic, Export Development Board and the Board of Investments of Sri Lanka for their active support in driving this policy forward.

The Sri Lanka Automotive Component Manufacturers’ Association is currently in talks with seven world-renowned automobile companies, in order to supply locally assembled and manufactured automobile components.

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Dimantha Jayawardena further expressed confidence in a better future for the industry in creating many jobs in the months to come.

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