Indian auto exports to Sri Lanka affected following duty hike.

Indian auto industry says, its exports to Sri Lanka in the recent times have declined considerably, following the Island nations moves to increase import duties of vehicles, during the early part of this year.

A media report says, even though the duty increase was not solely aimed at curbing Indian vehicle imports to the country, the decision has affected the neighboring the giant the most.

Sri Lanka accounts for 13% of India’s total vehicle exports.

India exports vehicles such as, Three Wheelers, Cars and also commercial vehicles to Sri Lanka, which were all subjected to duty increases during this year.

“We are still trying to evaluate the impact of the development. The impact of it has been negative and exports of vehicles to Sri Lanka has completely stopped,” Vishnu Mathur, the director general, Society of Indian Automobile Manufacturers, or Siam, has told the media.

The report says, New Delhi has taken note of the developments in Sri Lanka.

“We believe the very substantial rise in import tariff in Sri Lanka is going to adversely affect our car exports to Sri Lanka, so we are concerned about it,” Rajiv Kher, additional secretary, ministry of commerce, was quoted saying in the media report.

Indian vehicle exports to Sri Lanka has accounted for US$ 800 million during the year 2011-2012, out of a total of US$ 6 billion worth Indian auto exports.

Earlier this year, Sri Lanka took several measures to cut down the country’s rising import bill, in a bid to help narrow its widening trade deficit.

One of the moves was to increase the duties on vehicle imports.


Source : news360.lk