News Today: Sri Lanka’s automotive sector manufacturing aims to boost export revenue, creating jobs and fostering industrial growth

The assembly and automotive component manufacturing sector in Sri Lanka is on a trajectory to significantly increase export revenue from USD 800 million to USD 2 billion within the next five years. This ambitious goal will be achieved through the export of locally assembled vehicles and high-quality components, creating a substantial impact on the nation’s economy and employment landscape.

Currently, the industry generates an average of USD 5 to 10 million annually from vehicle and component exports. By 2029, this figure is expected to surge, supported by government incentives, a strategic geographic location, and an evolving supply chain infrastructure.

An official from the Sri Lanka Automobile Assemblers Association emphasized the potential of the sector to generate an additional 45,000 jobs, contributing to an already thriving workforce of over 5,000 skilled workers. Indirectly, the industry supports more than 10,000 jobs, sustaining the livelihoods of thousands of families across the nation.

The sector boasts over 17 assembly plants producing motorcars, SUVs, motorcycles, and electric three-wheelers. An additional 17 investors are preparing to launch operations, injecting approximately Rs. 2 billion into the industry. Drawing inspiration from countries like Thailand and Malaysia, Sri Lanka’s automotive industry is set to establish itself as a regional manufacturing hub.

During the temporary suspension of vehicle imports, local assembly industries demonstrated their strategic importance by conserving foreign exchange and reducing reliance on imported completely built units (CBUs). Renowned global brands like Hyundai, TVS, Bajaj, and Mahindra have established operations in Sri Lanka, reflecting its growing prominence in the global automotive arena.

As the Government considers lifting the ban on CBU imports, stakeholders urge a competitive tax structure prioritizing locally assembled vehicles. These measures are vital for sustaining growth, attracting investments, and safeguarding the sector’s future.

The automotive industry in Sri Lanka is more than an economic contributor; it symbolizes industrial progress and untapped potential, making it a cornerstone of the country’s development agenda.