Sri Lanka has spent USD 506.1 million on personal vehicle imports up to July 2025, a sharp rise from just USD 34.8 million a year earlier, official data showed. Another USD 162.2 million was spent on commercial vehicles during the same period.
Total dollar inflows into the country reached USD 2.6 billion in July alone, exceeding imports by USD 729 million, supported by stronger remittances and tourism receipts.
Personal vehicles, classified as consumer goods, are typically financed through credit, which is repaid over several years, unlike other consumer goods usually purchased with cash or savings. Commercial vehicles, in contrast, are treated as investment goods.
Overall investment goods imports rose 22.5 percent to USD 2.2 billion by July, including USD 569.2 million in building materials. This remains below the crisis year of 2021, when policy-driven credit expansion pushed building material imports to USD 706 million by July and USD 1.24 billion by December.
Analysts have raised concerns over recent interest rate cuts that have fueled a surge in private credit, particularly for vehicle imports. They warn that inflationary policies and credit-driven imports could pressure foreign reserves despite strong inflows.
Meanwhile, the oil import bill eased to USD 2.25 billion in the first seven months of 2025, down from USD 2.54 billion last year, helped by lower global fuel prices and increased renewable energy generation at home.
