Car Parts In Sri Lanka

Car Parts In Sri Lanka – A man stands in front of used car parts from Japan’s Toyota, at an auto parts store, in the city of Colombo, Sri Lanka, on February 17, 2022. (Reuters Photo)

Side mirrors for Suzuki’s compact Wagon R are becoming a commodity in Sri Lanka, as auto parts dealers in the island’s capital city of Colombo are receiving more customers looking for the product.

Car Parts In Sri Lanka

Car Parts In Sri Lanka

The struggle reflects growing economic risks in the South Asian nation, with falling assets, dwindling foreign exchange reserves and potential financial instability.

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The Suzuki five seater is very popular in Sri Lanka due to its low price. With about 30,000 cars sold in the last four years in the country with high traffic, side mirrors are often sought after in the second-hand shops scattered around the Nugegoda area.

“Everybody is looking for Wagon R accessories,” said Supun Deshak, a salesman at a shop in the district, where the shop floor is filled with spare parts.

The problem is that exporters are struggling to find car parts because they are considered less important according to the regulations made by the government to save the shortage of foreign currency after the coronavirus pandemic.

Reserves fell to $ 2.36 billion from $ 7.5 billion in January 2020. At the same time, the government is facing a debt of $ 4 billion this year, and local banks are often unable to provide the dollars that foreigners need.

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“The biggest concern now is the difficulty of importing spare parts to maintain existing vehicles,” said Yasendra Amerasinghe, president of the Ceylon Motor Traders Association (CMTA), which represents the country’s major car dealers.

The CMTA estimates that the export of spare parts for cars will decrease by about 30% in this currency, compared to the situation before the epidemic, mainly due to the decrease in income in recent months.

Five car dealers in Colombo told Reuters that many spare parts had already disappeared, and had just arrived from abroad, driving up local prices.

Car Parts In Sri Lanka

Exacerbating the problem are thieves looking to make a quick buck by stealing side mirrors from popular models like the Wagon R to sell in the thriving gray market, the traders said.

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The price of a refurbished Wagon R windshield has risen by more than 35% from before the pandemic to 30,000 Sri Lankan rupees ($148.5) a piece, dealers said.

The country’s economic crisis – the worst in a decade – has also driven up used car prices.

Almost all imported cars were banned in March 2020, followed by a ban on non-essential products such as air conditioners, refrigerators and video games, as part of the government’s efforts to tackle the economic crisis.

This raised the price of some used cars by more than 100%, CMTA said. Sri Lanka does not produce many cars there.

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A used Wagon R currently costs about 5 million Sri Lankan rupees, more than the 2.8 million Sri Lankan rupees that a new car costs in 2018, CMTA Vice President Virann De Zoysa said.

This has increased the risk to many car dealers looking to make money on the price but trying to repair their car and make other changes, said Musthaq Nazeer of Azka Auto Supply, a small auto glass and electronics shop.

With global automotive supply chains adding another strain, the CMTA said it has asked the government to list auto parts as essential commodities, as well as food and medicine, to increase imports.

Car Parts In Sri Lanka

“Every distributor is made up of many parts,” said De Zoysa. “We turn over customers every day.”

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