📈 Sri Lanka Vehicle Registrations Fall 7.4% MoM in June; SUVs Buck the Trend

Total vehicle registrations in Sri Lanka moderated in June 2026, dropping 7.4% month-on-month to 58,151 units (down from 62,776 in May) as declines in two- and three-wheelers offset resilience in passenger vehicles. • Overall & Segment Performance • Passenger Motor Cars: Total registrations fell to 3,929 units (vs 4,738 in May). Brand-new cars dropped to 998 units, dominated by electric vehicles (EVs) like BYD (519 units). Pre-owned cars fell to 2,931 units, led by Suzuki (987 units) and Toyota (767 units). Small cars accounted for over 96% of both segments. • SUVs & Crossovers: Strongest-performing passenger category, surging to 5,933 units (vs 5,511 in May), driven by brand-new registrations rising to 2,580 units (up from 1,929 in May). • Premium Vehicles: Edged down slightly to 147 units (vs 152 in May), led by Mercedes-Benz (59) and Audi (43). High-end imports—taxed at over 200%—continue to support critical government revenue. • Financing & Policy Context • Financing share stood at ~43% for brand-new and 44% for pre-owned cars. • JB Securities noted dealers may be pre-registering stock to avoid a monthly 3% penalty on CIF value for inventory held past 90 days—a measure intended to protect the national current account from excessive inventory buildup.