Vehicle Import Momentum Cools Following 2025 Peak 📈

JB Securities reports a moderation in Sri Lanka’s automotive sector as the initial import surge eases, providing relief to the current account. • Overall Figures: Total vehicle imports dropped to US$ 236.4 Mn in January 2026, down from the December peak of US$ 311.1 Mn. Personal vehicle imports saw a sharper 32% MoM decline to US$ 163.8 Mn. • Registration Trends: Total registrations fell by 3,683 units to 51,682 in February. Motor car registrations specifically declined from 4,648 to 4,163 units. • Sector Breakdowns: Two-wheelers remain the highest volume category. SUVs and Crossovers are outpacing traditional cars in the passenger segment. Electric Vehicles (EVs) and hybrids showed moderate growth, with a rising presence of Chinese manufacturers. • Economic Impact: The slowdown in imports likely supported the CBSL’s US$ 461 Mn forex purchase in February, signaling a healthy current account surplus. • Market Insight: Experts suggest headline registration numbers may be "inflated" as dealers register slow-moving inventory to avoid a 3% monthly penalty on vehicles not registered within 90 days of import.