The Ceylon Motor Traders Association (CMTA) raised concerns about the difficulties in establishing LC facilities with regard to spare parts orders. These unofficial restrictions by banks have begun to cripple Sri Lanka’s vehicle fleet maintenance, which would have a direct impact on goods and people transportation and the economy.
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 and tourism, which are heavily reliant on the availability of transport.
Many vehicle owners are resorting to dangerous patch repairs, usage of non-genuine spare parts and used spare parts imported from overseas junkyards. These practices place the safety of vehicle users and the public in great danger.
These restrictions and delays of LC facilities have resulted in the inability for legitimate franchise holders to predict the supply or price of spare parts creating uncertainty and panic across the automotive market.
The franchise holders, 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 urges policy makers to pay attention to the plight of the automotive industry and identify spare parts as an essential goods category to keep Sri Lanka’s ageing vehicle fleet functioning. Inability to maintain these vehicles according to manufacturer recommended schedules will result in greater repairs and breakdowns in the future, causing even greater foreign currency drain.