Vehicle imports have increased by around 65 percent during the first five months this year compared to the corresponding period last year.

The recent increase in taxes has no major impact on the vehicle import market and added that the number of orders for vehicles has increased sharply this year, Chairman Ceylon Motor Traders Association (CMTA), Tilak Gunasekera said.

According to the Department of Motor Traffic 200,418 vehicles had been registered during the first five months this year compared to 121,269 vehicles registered last year, an increase of 79,149 vehicles registered.

Vehicle imports increased to 359,243 last year from 204,075 in 2009 which recorded a sluggish growth in the vehicle import market. Imports of vehicles rose sharply since mid 2009 with the reduction of duty.

The CMTA welcomes the move by the government to reduce the age limit of cars from three and a half years to two for imports. Cars manufactured prior to mid 2009 cannot be imported according to the regulations.

“The CMTA has been lobbying for the reduction in the age limit of cars because Sri Lanka should not be a dumping ground for old vehicles”, Gunasekera said.

The government phased out the import of used and reconditioned vehicles in a move to curb environmental pollution in cities from high carbon emission. Gunasekera said the CMTA will launch an awareness program to reduce the number of fatal accidents that have increased alarmingly over the years.

The CMTA is negotiating with the traffic police to conduct programs on road discipline.