Sri Lanka’s vehicle registration up due to low interest leasing facilities and Yen depreciation

May 07, 2015 (LBO) – Sri Lanka’s vehicle registration grew 31.5 per cent to 429,556 in 2014, backed by low interest leasing facilities, Japanese Yen depreciation against Sri Lankan rupee, rise of hybrid vehicle imports and increase in of motor cycle registration, the Central Bank said.

“The number of new vehicles registered during 2014 increased by 31.5 per cent to 429,556 following a decrease of 18 per cent in the previous year,” Central Bank annual report 2014 said.

“The increment could be largely attributed to the favorable interest rates on leasing facilities, the depreciation of the Japanese Yen against the Sri Lankan Rupee, the increased importation of hybrid vehicles to the market and the increase in the registration of motor cycles.”

Sri Lanka’s interest rates are now at three decade low and the reduction in fuel prices by the new government are also pushing down vehicle operating costs.

The number of cars registered increased by 36.6 per cent while the registration of three wheelers declined by 5.5 per cent during 2014.