The app called JumJum (Let’s Go) will initially launch in Kathmandu, where 40 percent of the 2.5 million motorcycles are said to be used.

“This strategic partnership is the culmination of a long search in South Asia to take our services to another country in the region,” PickMe’s Chief Executive Zulfer Jiffry said in a statement.

“We have done it in a manner that adds value to the Nepali economy, by engaging with an acclaimed Nepalese tech company.”

Motorcycles are in wide use in Nepal accounting for 78 percent of 3.22 million vehicles registered in the country.

“In heralding the arrival of JumJum in Nepal, we witness the  convergence of two technological powerhouses: PickMe from Sri Lanka and F1Soft from Nepal,” Biswas Dhakal, President and Chairperson of F1Soft Group said.

PickMe is a company in which Washington-based International Finance Corporation invested 2.5 million dollars in 2018.

“Over the years, PickMe excelled in diversifying their products and services by expanding beyond ride-hailing to being a logistics company and also a pioneer in delivering necessities, especially during crises,” Alejandro Alvarez de la Campa, Country Manager for IFC in Sri Lanka and Maldives said.

“It also became a platform which helped create jobs and new economic opportunities for many, including for women.”

Chairman of PickMe, Ajit Gunewardene said the firm was started 10 year ago, its capacity to go across borders was expected.

“The vision was to provide a service that would be of international standards,” Gunawardana said.

“Over the years, PickMe has diligently forged partnerships across the region, and as we venture into the Kathmandu valley, our aspirations have been realised.

“While there will undoubtedly be a learning curve, it serves as a vital stepping stone towards propelling PickMe to greater heights with expansion into new markets.”

Jiffry says the move to Nepal Sri Lanka shows the potential to expand digital businesses in the region, and earn foreign exchange.

PickMe hoeps disrupt the Nepalese digital transportation and also plans to use Generative AI to fine tune service to local habits and consumer patterns, he said. (Colombo/May14/2024)

The work is part of a 91.27 million dollar project carried out by IRCON, an Indian state firm, and is expected to be completed in six months.

Sri Lanka’s Minister of Transport Bandula Gunawardena and High Commissioner of India to Sri Lanka Santosh Jha formally inaugurated the construction work.

India has provided 318 million US dollars to upgrade 128 kilometres in track from Maho to Omanthai.

Railways has been a priority sector in India’s assistance to Sri Lanka.

So far India has executed over a billion US dollars of projects.

IRCON re-built the 253 kilometres of track to the North and also 115 kilometres in the South.

A signalling system has also been installed on 330 kilometres of railway lines.

Tracks upgraded by India has led to faster trains and sharp falls in travel times. (Colombo/Jan08/2023)

The ministry of transport had earlier called for expressions of interest for 50 electric buses, but the investment cost of charging points made the project unviable, he said. Feedback indicated that 200 to 500 buses are needed to make such a project viable.

The cabinet of ministers had now approved a 200-bus project, which will be run in collaboration with state-run Sri Lanka Transport Board.

“It will be a build operate transfer style project for a number of years,” Minister Gunawardana said. “”Any investor from Korea, or China or UK could express interest.

“They could also propose terms and the period.”

The SLTB had no resources to invest in electric buses, he said. Once the investors earned back his return the assets will go the SLTB.

The buses will operate on existing SLTB routes in the Western province.

Electric buses are found in India, Bangladesh, Singapore, South Korea and Japan.

When the electric buses come, 200 SLTB buses will be withdrawn from the Western province and deployed in provincial routes. (Colombo/Aug30/2023.

The cabinet of ministers had given the approval to appoint a committee which will study the organization and recommend a more appropriate structure.

Sri Lanka Railways was hit by a sudden strike this week, which led to the cancellation of around 80 trains.

Minister Gunawardana said people were telling him to privatize the railways in the hope that service would improve.

He was not recommending privatization, but the committee would look at options available to make the railways more productive.

The railways is one of the largest landowners of the island. (Colombo/July25/2023)

To boost utilization of the airport government approval has been received for several new activities including aircraft parking, a maintenance repair & overhaul (MRO) centre and cargo transshipment.

Aircraft Disassembly and Recycling is also a promising revenue earner, Chandrasiri said in the agency’s 2022 annual report.

Mattala Airport had marked 10 years on March 18, 2023. 

The airport handled 11,577 passengers, down 65 percent from a year ago, and 2 metric tonnes cargo, down 96 percent. Aircraft movements were also down to 63 percent to 216. (Colombo/June 08/2023)

Vehicle license fees now form part of provincial revenues.

“To ensure proper road maintenance and to reduce the high expenditures incurred by the government for road building and maintenance, the motorists should also shoulder the cost, as is the case in other nations,” Ministry of Transport and Highways, Media Secretary, Mahesh Vikrama said.

“The fee is in the form of a tax, for which we will set aside a specific sum for the fund and include it in the tax. To accomplish that, we must submit an act to the parliament.”

In March the cabinet of ministers approved the setting up of a road maintenance fund.

Charging taxes directly from users, reduces burden on the general taxes.

In a budget for 2023, 100 million rupees of seed money was allocated for the proposed road fund.

allocated a sum of 100 million in the 2023 budget to construct all main and inter-provincial roads.

In 2022, 375 billion rupees has been set out in the budget for the constructing and maintaining rural and interprovincial highways.

According to the Minister for Transport and Highways, Bandula Gunawardana, Sri Lanka would be able to maintain a stronger road network by using money from the RMF and be less of a burden on the general tax revenues. (Colombo/April178/2023)

Sri Lanka’s Joint Apparel Association Forum said the original regulation was issued on the basis that the cost of carriage of containers from origin to destination must be identified as all-inclusive freight without dividing them into land costs and freight components, the service provider can only recover costs incurred from the use of the service to whom the service was provided, and not from a third party, with no such contractual liability and goods that landed at port could only indicate “Freight Pre-Paid” or “Freight Collect”.

The concept of zero freight was not allowed.

The full statement is reproduced below:

JAAF raises objection to the Government’s plans to withdraw Gazette No 2041/10 of the Licensing of Shipping Agents Act which protects importers and exporters from anti-competitive practices

● Market-friendly legislation should not be withdrawn under any circumstances unless the ministry wishes to make Sri Lankan exports non-competitive and increase the cost of living solely based on the urging of a few service providers supported by them

● Withdrawal of Gazette Notification No 2041/10 dated 17th October 2017 will result in the Minister of Ports abandoning his regulatory duties, such as protecting free-market competition and axing the cardinal principles of shipping where no price fixing is permitted; leading to increased costs of imports and adding to inflationary pressures.

● Ministers should not have the power to punitively fix charges on transactions between private parties. The Minister must be an impartial regulator to protect the weaker party in the absence of equal bargaining power.

19th January 2023: The Joint Apparel Association Forum (JAAF) is perturbed to learn that the government is planning to withdraw Gazette No 2041/10 dated 17th October 2017 of the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No 10 of 1972, which has been protecting importers and exporters from anti-competitive practices of service providers for many years.

Gazette No 2041/10 which is the amended Gazette No 1842/16 of 27th October 2013 reconfirmed four cardinal principles to protect both importers and exporters from service providers who may charge exorbitant fees in addition to freight for the carriage of goods.

The four principles of the Gazette that upheld free market values were:

Principle 1 – the cost of carriage of containers from origin to destination must be identified as all-inclusive freight without dividing them into land costs and freight components.

Principle 2 – the service provider can only recover costs incurred from the use of the service to whom the service was provided, and not from a third party, with no such contractual liability.

Principle 3 – goods that landed at port could only indicate “Freight Pre-Paid” or “Freight Collect”. The concept of zero freight was not allowed.

Principle 4- in the case of imports to Sri Lanka the only charge permissible outside the freight was the Delivery Order (DO) fee. All other costs had to be calculated in the all-inclusive freight.

Gazette No 1842/16 dated 27th October 2013 was further enhanced by Gazette No 2041/10 to strengthen the role of Director General, Merchant Shipping (DGMS) for the effective implementation of setting only a Delivery Order fee outside the freight cost.

However, to the dismay of all importers and exporters of the country, including the apparel industry represented by JAAF and the Sri Lanka Manufacturers and Exporters of Rubber Products (SLAMERP), the Minister of Ports issued the new Gazette No 2302/24 of 20th October 2022 introducing a maximum delivery order fee and new additional charges of US$8/ Cubic Meter under a broader category of a “cost recovery charge”.

Thus, contravening the cardinal principles and protections guaranteed to Sri Lankan importers and exporters, curtailing economic activity and driving up the costs of all purchases.

The entire import and export industry, including JAAF, vehemently objected to the regulations introduced under Gazette No 2302/24. Our opposition to the newly published Gazette is based on the following reasons:

1.) The Gazette violates the core principle of all-inclusive freight cost that requires the contracting party to bear the full cost of such freight.
2.) The Gazette permits freight forwards and shipping agents to charge fees from third parties who are not party to the original contract.
3.) New additional charges will undoubtedly increase the cost of freight, for both imports and exports, which will lead to higher costs of living for the public, and reduce the competitiveness of exports, at a time when export growth is crucial to the recovery of the economy.

Moreover, to the further dismay of importers and exporters, on 5th January 2023, the Minister tabled a supplement in Parliament to amend the Licensing of Shipping Agents Act No 10 of 1972 to allow himself the authority to set Delivery Order and other fees, whereas the previous Gazette demanded the service providers to obtain the approval of DGMS to do so.
The new regulations under Gazette No 2302/24 allow the Minister to fix charges on transactions between private parties. By taking over the powers to himself of punitively fixing charges—at his own will. Rather than be a regulator to protect the weaker party in the absence of equal bargaining power, should the stronger party win the confidence of the Minister the weaker party can be crushed.
While JAAF commends the Minister’s promise on the 13th of January 2023 to withdraw Gazette No 2302/24 of 20th October 2022, the industry is alarmed to learn that the ministry secretariat is planning to withdraw Gazette No 2041/10 of October 17th, 2017 as well. The original piece of legislation which carries the globally accepted cardinal principles of markets, shipping, and trading. These principles are reflected in the President’s vision for the country to follow a path of a Social Market Economy and prove to have very serious consequences for the country.

JAAF would like to reiterate that globally accepted market-friendly legislation should not be overlooked or withdrawn without reason solely based on the urging and request of a few service providers and at the expense of industries that contribute to the country’s GDP and critical foreign exchange earnings.

This move will subject all industries to punitive charges making all export sectors uncompetitive leading to a loss of orders (which is already at a 25-30% year-over-year dip), dampening investor confidence and creating a negative business environment for local entrepreneurs. Most importantly, this move will increase costs to importers, adding to the already unbearable cost of living.

Therefore, JAAF urges the Government to protect and uphold the Gazette No 2041/10 dated 17th October 2017 of the Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act, No 10 of 1972, in the interest of importers, exporters and the citizens at large.

IRCON, an Indian state firm has just kicked off a 91.27 million dollar upgrade of 128 kilometres of track running from Maho in north central Sri Lanka to Omanthai to connect with the railway line to Jaffna.

The updgrade will allow trains to be run at speeds of around 100 kilometres an hour and cut travel to Jaffna by an hour.

Modernization of railways was required to improve mobility and boost growth India’s High Commissioner to Sri Lanka Gopal Baglay has said at the ceremonial start of the project on January 08.

Strengthening connectivity internally as well as with India would enhance pilgrimages, tourism, trade and bring economic benefits for the people of both countries, he was quoted as saying in a statement issued by the Indian High Commission in Colombo.

He stated that India will work with Sri Lanka to introduce green and sustainable transport solutions.

From March 2009 IRCON has re-built 253 kilometres of the Northern line and upgraded 115 kilometres in the Southern line and installed signaling systems over 330 kilometres.

India has continued to give loans after Sri Lanka defaulted in April 22.

India recently delivered 125 Mahindra SUVs to Sri Lanka police out of 500 units to be given under a line of credit.

Sri Lanka state transport board was given 75 out of a 500 bus supply contract. (Colombo/Jan09/2022)

In the year 2022, HIP handled a total volume of 558,188 units through 249 vessel calls, which is expected to increase in 2023.

Hambantota Port said it had been “aggressively marketing its services and regular overseas visits to the shipping line principles to promote the port.”

“In order to meet the new demand, HIP is currently evaluating options to invest in additional storage yard areas,” Tissa Wickramasinghe Chief Operating Officer of the Hambantota International Port Group (HIPG) said in a statement.

The main shipping lines operating to Hambantota Port includes Hyundai Glovis, K Line, MOL, NYK Line, Eastern Car Liner, Hoegh Autoliners and Gold Star Line.

In the first week of 2023,  NYK vessel MV HERMES LEADER, which arrived at the port this week, with new volumes with 1,156 vehicles. The vehicles from India will be transshipped to South Africa, Jordan, Sudan and Tanzania. (Colombo/Jan08/2022)

The upgrade from Maho to Omanthai in Vavuniya will see the track capable of running trains at speeds of up to 100 kilometres an hour.

The track from Omanthai to Jaffna was previously upgraded under an Indian credit line.

The travel time from Colombo to Jaffna will be cut by about an hour after the upgrade. The track will be closed for five months from January five.

Sri Lanka Railways will operate 5 trains to Anuradhapura daily and busses will be provided by state-run Ceylon Transport Board and other operators to carry passengers to Jaffna.

The section of the track has 213 culverts and 90 bridges an IRCON official said.

The track now has speed restrictions on 27 locations where the train can be run at 10 to 40 kilometres an hour. After the upgrade the minimum speed will be 70 kmph.

The track will be re-built from the bottom up, with new ballast and welded tracks, which will allow for fast smooth travel without the current ‘jerks’. (Colombo/Dec28/2022)

The proposal comes as President Ranil Wickremesinghe’s administration is struggling to raise government revenue and boost investor confidence of sovereign debt defaulted island nation.

“Performance of the logistics infrastructure is another barrier for exporters, importers and investors,” President Ranil Wickremesinghe said on Monday (14) presenting the crisis-hit budget for 2023.

He proposed to introduce a three-year Logistics Development Programme from 2023 to 2027 targeting to improve the logistics performance of Sri Lanka among the first 70 countries. (Colombo/Nov16/2022)

In 2022 Sri Lanka’s rupee collapsed from 182 to 360 to the US dollar after two years of money printed to keep interest rates down for stimulus, driving up costs.

Sri Lanka’s rupee was 4.70 to the US dollar when the power to print money to manipulate rates was given to economists in 1950, and the people have not been able to take it away up to now by curbing open market operations by law. Instead legislators have given powers to the central bank and other bureaucrats to curb economic freedoms of the people with exchange and trade controls.

In 2021 Sri Lanka railways lost 10.3 billion rupees up from 10.05 billion rupees in 2020 according to central bank data. In 2022 fares were hiked to half that of buses under Transport Minister Bandula Gunewardene.

Sri Lanka Railways saw a surge in demand in 2022 as bus fares went up and fuel prices also pushed up costs of private transport but the agency was unable to recover fuel costs, not counting salaries and other expenses.

In May Sri Lanka Railways had earned revenues of 357 million rupees and fuel costs was 669 million rupees, leaving a gap of 312 rupees, Gunasinghe said.

In June after diesel prices were raised, fuel costs went up to 1.3 billion rupees 432 million rupees, leaving a loss of 868 million rupees.

In July revenues went up to 589 rupees and fuel cost was 1.3 billion rupees leaving a loss of 711 rupees.

In August revenues went up to 1,040 million rupees after a fare hike which was still more that 200 million rupees below the cost of fuel.

Sri Lanka railways is starting weekend tourist trains to Kandy on a fully cost recovery basis, Transport Minister Bandula Gunawardana said.

On Saturday and Sunday an air conditioned train will leave Colombo Fort at 6.30 and arrive in Kandy at 9.20 am. It will leave Kandy at 4.50 pm and arrive back in Colombo by 7.40 am. A first class one way ticket is 2000 rupees and second class 1500 rupees.

A train to Anuradhapura is also planned, he said.

Minister Gunawardana said railways had properties which was occupied by various persons who were not paying rent on time.

“I urge people to pay at least part of the rent due to railways,” he said.

Recently after a meeting with users of railway property in Polonnaruwa with the participation of divisional secretaries and railway officials in a weekend, people paid 1.6 million rupees in rent arrears. (Colombo/Sept30/2022)

“I plan to ask permission from the central bank to charge for tickets in US dollars,” Minister Gunawardana said.

“Hotels charge in US dollars, I do not see why we cannot.”

Sri Lanka’s Department of Railways is finding it difficult to import spare parts for its old engines, he said.

Minister Gunawardana hiked fares to half that of buses and has sharply reduced operations losses, he said.

Minister Gunawardana has also proposed to call international tenders to sell metal scrap to raise dollars for Sri Lanka Railways.

Related

Sri Lanka railways seek forex from scrap metal amid currency crisis

Sri Lanka has an intermediate regime central bank (a soft-peg) which collapses and forex shortages emerge whenever aggressive open market operations are employed (liquidity is injected) to artificially suppress interest rates.

Sri Lanka’s economists got the power to print money in 1950 through US designed Latin America style, though they were not explicitly given the power to depreciate the currency, as the agency was required to maintain a peg to gold at 1.99 grains of gold.

However the rules were relaxed in 1980s, after the US dollar was floated in the 1970s and it was made earlier to depreciate the rupee to compensate for monetary policy errors under so-called basket, band, crawl (BBC) policy that was peddled by Washington based Mercantilists, critics say.

Latin America style central banks also started to default from the 1980s.

Once the power was given, economists are now unwilling to give up the power to print money and depreciate the currency though calls are intensifying to harden the peg block monetary instability.

Over the year economists have lobbied politicians to control and exchange control and import control laws and curtail the economic freedoms of citizens during successive currency crises and money printing depleted reserves.

Money laundering laws were deployed against citizens who use US dollars in the current crises to enforce a state monopoly in money, legal tender. (Colombo/Sept27/2022)

“Due to the foreign exchange crisis, I have instructed scrap metal to be sold for dollars through an international tender,” Gunawardana told parliament.

“We are collecting old rails and other metal scrap to sell.”

Sri Lanka is in the grip of the worst currency crisis in the history of its intermediate regime central bank after printing money for two years suppress interest rates.

State railway system was also short of rails but was unable to import rails. Some rails removed from a track north of Anuradhapura could be used, he said.

On the southern line due to dilapidated tracks trains were running at 20 kilometres an hour and were also de-railing, he said. (Colombo/Sept22/2022)

The cabinet of ministers had approved changes to the law proposed by Sri Lanka’s minister of transport and highways.

Electric three wheelers will be allowed to reduce usage of fossil fuels, the statement said.

Sri Lanka produces electricity from the cheaper sources than liquid fuels including hydro power and coal.

Sri Lanka has nearly more than 1 million three wheels and it has become a source of self-employment for nearly 1 million people, official data show.

Many three-wheel drivers lost their usual earnings while some lost their livelihoods due to fuel shortage and long queues for fuel as the price sharply increased to a record high.

Wickremesinghe had discussions regarding the supply maintenance of fuel with representatives of the Three Wheeler Associations on Thursday (02), his office said.

“The Prime Minister agreed to support the establishment of a three-wheeler regulatory body,” his office said in a statement.

Sri Lanka needs around $500 million a month to import required fuel, while the country’s dollar shortage has forced the island nation to depend on an Indian credit line for fuel and essentials from March this year.

“Therefore, discussions were held at length on measures to be taken to protect the three-wheeler industry in the face of the crisis facing the country in the future,” it said.

Related: https://economynext.com/sri-lankas-economic-crisis-compels-uber-pickme-drivers-to-cancel-credit-card-hires-93911/

In addition to this discussion, Wickremesinghe had meeting with representatives of the Petrol Station Owners’ Association, in which the security of the petrol stations and the regularization of fuel supply was discussed.

Security of the petrol stations and the regularization of fuel supply have become priority after a mob torched a fuel station owner’s residence in Anuradhapura on May 21, using a petrol bomb.

Related: https://economynext.com/mob-sets-sri-lanka-fuel-station-owners-house-on-fire-amid-petrol-queues-94526/

(Colombo/June 03/2022)

Deputy General Manager of Transportation at the Railway Department, Gamini Seneviratne told reporters on May 05, said the main unions have not given notice of a strike, therefore all trains will be operating as usual.

“The main unions, such as the Station Master’s Union, Train Controllers union and the Driver’s union have not informed us officially that they will participate in this harthal,” Seneviratne said.

“In the discussions between the station masters and controllers’ union with the Manager of Railway department, they said they will not participate and we hope that we will be able to run all the train trips tomorrow,”

Seneviratne asked the general public not to panic.

“Normally we have 275 trains and we hope to operate all of the tomorrow. We have the drivers association with us therefore we hope that trains will operate in seaside and main routes,”

The Train Engine Drivers Union, Secretary, Indika Dodangoda said, with the country in a crisis already the union has decided not to participate in the one-day strike further creating inconvenience to the general public.

However, Tran Union Alliance said, more than 65 unions in the department have agreed to support the one day strike.

The Railway Union Alliance member M J Robert claimed unions that are close to the authorities will not participate in the strike.

“Even though the department says they will run these trains, we challenge them to at least try and operate 25 trains tomorrow,” Robert told EconomyNext on Thursday (5).

“This is not a problem in the railway department. This is a problem faced by the whole country. We have around 70 plus active unions in the department and out of that more than 65 unions are together to support the hartal tomorrow,”

“Few unions are supporting the authorities and they are the ones who saying they will not support the strike however, all junior associate and all workers with us will support this.

Robert said, to further support the strike a protest will be organized in front of the Pettah Railway station on May 6. (Colombo/May 5/2022)

The minimum fare had gone up from 17 to 20 rupees, Petroleum Minister Gamini Lokuge told reporters after the cabinet meeting.

Transport Minister Dilum Amunugama had submitted the higher rates proposed by the National Transport Commission.

The 20 rupee fare is now 23 rupees, the 27 rupee fare is now 31 rupees, the 33 rupee fare is 38 rupees, 39 rupee fare is now 45 rupees, the rupee 52 fare is now 60, according to Sri Lanka’s Divaina newspaper.

Sri Lanka’s rupee has fallen to around 265 from an earlier 203 after money printing broke an unstable peg with aggressive open market operations.

Sri Lanka’s diesel prices are now 176 rupees a litre at state-run Ceylon Petroleum Corporation and 214 at the Lanka IOC. (Colombo/Mar15/2022)

‘’We are still at the primary stage of examining documents and we are still not sure about the amount that will be waived off,” a senior SLPA official told EconomyNext on Tuesday (23).

“We can’t even be sure of the exact number of requested waivers as we have received many in a short period.’’

The island nation’s main port saw hundreds of containers stuck in its dockyards as importers struggled to clear them because they could not open letters of credit or secure adequate US dollars.

The government has given priority to clearing essential food containers to avert a possible food shortage and arbitrary price increase in essential commodities amid higher demand.

The SLPA has already called for documentary evidence to review the eligibility for waivers, as a special concession to importers, towards cargo landed at SLPA-owned terminals (JCT & ECT) pending clearance up to January 31, 2022, in the wake of the prevalent foreign exchange situation.

The SLPA has said “some number of consignments [are] lying uncleared over a significant period of time”.

Importers have complained of no US dollars to clear their imported containers since the last quarter of 2021.

“The individuals have to bring in documents from the bank to prove that they could not pay the fees due to the forex crisis,” another senior SLPA official told EconomyNext.

“Every day we get many documents, and we are working to get them all processed. We are giving preference to food items like rice, sugar, and so on.”

Neither official commented on the total number of containers stuck in the port but claimed that it was not 2,000 as reported in media.

‘That it is not true. At any given time there are a lot of containers coming and going from the dockyards. I don’t know from where these figures went to the media, but there is no such problem.’’

In January 2019, only 10.10 percent of cargo remained in the dockyards for over a week. In January this year, the figure has increased to 11.59 percent. SLPA officers said, ‘There’s an increase but not as drastic as reported, and it is not even worth mentioning.’’

“At this time we were made aware that we don’t need to earn a super profit and charge unnecessary charges to take advantage of this crisis. So the decision to remove the demurrage and penal costs were made while thinking of the importers.’’ (Colombo/Feb23/2022)

Sri Lanka’s central bank has triggered the worst forex crisis in the islands recent history by printing money to keep rates down, firing an import boom in areas beloved of ruling interventionists as credit picked up while depriving the people of vital items to keep the economy ticking.

The Ceylon Motor Traders Association (CMTA), representing vehicle agents (franchise holders) in the island said they found it difficult to open letters of credit to import spare parts.

Banks were generally prioritizing food, medicines and fuel, financial sector sources say.

“These unofficial strictions by banks have begun to cripple Sri Lanka’s vehicle fleet maintenance, which would have a direct impact on goods and people transportation as well as the overall economy,” the CMTA said.

“If the transportation sector grinds to a halt, that would have a severe impact on the main revenue lines of the country such as exports & tourism, which are heavily reliant on the availability of transport,” Ceylon Motor Traders Association,

“The franchise holders who have been battered by the import ban of almost two years, are now facing difficulties in managing their after sales operations, which is the only revenue stream left to sustain their staff and overheads.”

The CMTA said vehicle owners are resorting “dangerous patch repairs, usage of non-genuine spare parts”.

Others were using spare parts cannibalized from discarded cars overseas. Car owners say used parts have also doubled in price and the earlier ability to choose better parts has now been lost.

Analysts say Sri Lanka will have to steeply raise rates and float the currency to end central bank reserve sales for imports and re-establish a working monetary regime. (Colombo/Feb18/2022)