The Vehicle Importers’ Association of Sri Lanka (VIASL) has urged the government to introduce tax relief measures to make small vehicles more affordable, citing a sharp decline in sales following the recent disaster situation.

VIASL President Prasad Manage said priority should be given to reducing prices of low engine-capacity vehicles commonly used by middle-income earners. He called on the government to revise the tax and pricing structure for vehicles in the 1,000cc category, including popular models such as the Alto, Wagon R, Yaris, and Hustler.

“These are fuel-efficient vehicles primarily purchased by middle-class citizens. Such vehicles should be encouraged and made more accessible to the general public,” Manage said.

He noted that despite being compact and economical, a Wagon R currently attracts taxes of around Rs. 4 million, making it unaffordable for many potential buyers.

Manage also highlighted that vehicle sales have declined significantly in the aftermath of the recent disasters, worsening the already challenging economic conditions faced by consumers. He said many customers who placed orders are now unable to complete their purchases.

Under existing regulations, a 3 percent penalty is imposed if the vehicle clearance process exceeds the stipulated three-month period. In this regard, the VIASL President appealed to the government to consider the prevailing situation and waive the penalty, at least temporarily.

Easing certain conditions on imported vehicles, he said, would help revive the market and provide much-needed relief to consumers struggling amid ongoing economic and post-disaster pressures.