Sri Lanka will impose a 100 percent margin deposit on car import LCs with effect from today, Finance Minister Ravi Karunanayake told at a media briefing held in Colombo.
According to data Sri Lanka’s expenses on vehicle imports has doubled to 744 million US dollars for year 2015 compared to 374 million dollars in the same period last year.
The margin will be effective from today October 02, 2015 Karunanayake said.
The same step was last taken in 2013.
Sri Lanka has imported about 491,000 vehicles for the eight months ended August this year.
“We have more vehicles in Sri Lanka than we require at the moment. Even though we understand the need to have a vehicle,” Karunanayake said.
“We are taking these measures to control it,”
The loan to value ratio (LTV) for vehicles, however, will be increased back from 70 percent to 90 percent due to the imposition of the 100 percent margin deposit on LCs.
“When we increase the LC margin, we can relax the loan value,” Karunanayake said.
“We received a lot of requests from banks and finance companies to relax the loan value as it was hitting the second hand car market"
Source: http://www.lankabusinessonline.com/sri-lanka-slaps-100-margin-on-car-lcs-calls-for-expat-funds-finance-minister/
Showing posts with label Lease. Show all posts
Showing posts with label Lease. Show all posts
Saturday, October 3, 2015
Wednesday, September 23, 2015
Temporary measure to reduce new vehicles
Transport Deputy Minister Asoka Abeysinghe said the government made it compulsory to pay 30 per cent of the value of a vehicle to the leasing company when purchasing a vehicle on lease and it was just a temporary measure to reduce the number of new vehicles registered and not to create hardship to the purchasers of vehicles.
Addressing a meeting of the Atugalpura Journalists’ Association he pointed out that one could take away a vehicle on lease without making an initial payment, but now the purchaser should pay 30 per cent of the value of the vehicle.
“Statistically over 5 million families live in Sri Lanka, but 6 million vehicles have been registered. At present 600,000 motorcars, 3.2 million motorcycles, one million trishaws, 100,000 buses have been registered and this has created severe traffic congestion in the main roads. The government has proposed to reduce the staff of the SLTB through voluntary retirement. The SLTB has not paid ETF contributions since 2010. However, 7,000 new employees have been appointed for the period. At present the SLTB has 36,700 employees for 6,500 buses. The government is planning to streamline the affairs of the SLTB” he said. Public transport services in any country are not profit making enterprises but they are not running at a loss. However, in Sri Lanka public transport services are running at heavy losses” he said.
Addressing a meeting of the Atugalpura Journalists’ Association he pointed out that one could take away a vehicle on lease without making an initial payment, but now the purchaser should pay 30 per cent of the value of the vehicle.
“Statistically over 5 million families live in Sri Lanka, but 6 million vehicles have been registered. At present 600,000 motorcars, 3.2 million motorcycles, one million trishaws, 100,000 buses have been registered and this has created severe traffic congestion in the main roads. The government has proposed to reduce the staff of the SLTB through voluntary retirement. The SLTB has not paid ETF contributions since 2010. However, 7,000 new employees have been appointed for the period. At present the SLTB has 36,700 employees for 6,500 buses. The government is planning to streamline the affairs of the SLTB” he said. Public transport services in any country are not profit making enterprises but they are not running at a loss. However, in Sri Lanka public transport services are running at heavy losses” he said.
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