(Commonwealth_ Dimantha Jayawardena, the Chairman of the Sector Advisory Committee for Automobile at the Ministry of Industries, recently unveiled Sri Lanka’s ambitious plans to bolster its automobile component manufacturing sector, earmarking it as a linchpin for economic growth. Jayawardena outlined a strategic roadmap aimed at elevating exports from the current $200 million to an impressive $1 billion, signaling a significant expansion for Sri Lanka’s automotive industry.
Despite grappling with formidable challenges amidst the tumultuous business landscape of 2020, Sri Lankan automotive component manufacturers have made a triumphant resurgence, emerging as key players in the global export arena.
Jayawardena underscored the Ministry’s proactive approach in nurturing potential assemblers and component manufacturers, with the goal of creating up to 45,000 job opportunities within the sector. The overarching vision is to position Sri Lanka as a prominent global automobile manufacturing hub by 2037, in alignment with a meticulously crafted 20-year master plan for the automobile assembly industry.
The temporary embargo on motor vehicle imports has acted as a catalyst for the demand for locally assembled vehicles, providing a significant impetus to the industry’s growth. Furthermore, the impending establishment of a cutting-edge Research and Development (R&D) and testing facility by the Industrial Development Board (IDB) underscores Sri Lanka’s commitment to innovation and quality assurance, essential elements for enhancing competitiveness in the global automotive market.
Situated strategically at the juncture of major trade routes linking the east and west, Sri Lanka has become a focal point for international automotive giants seeking to invest in its burgeoning market. Concurrently, a rising inclination among Sri Lankan consumers towards locally assembled vehicles has provided added momentum to the industry’s upward trajectory. This dual dynamic of international interest and domestic preference underscores the attractiveness and potential of Sri Lanka’s automobile sector, positioning it for sustained growth and development in the global automotive landscape.
The landscape of Sri Lanka’s automobile assembly industry is undergoing a remarkable transformation, drawing renowned brands such as Hyundai, Proton, BAIC, and Mahindra, among others. The approval for assembling a wide range of vehicles, including SUVs, cars, two-wheelers, and buses, underscores the sector’s diversification.
The entry of electric bike assemblers like KD Rize, Dyno, and Senaro, alongside established players like JAC and FOTON, heralds a shift towards sustainable transportation solutions. By the year’s end, the number of assemblers operating within the local automobile assembly industry is projected to exceed 30.
In order to uphold stringent quality standards, manufacturers in Sri Lanka’s automobile industry are mandated to achieve a minimum domestic value addition of over 20% by incorporating locally produced automobile components into their products. This commitment ensures both quality control and promotes the growth of the local automotive component manufacturing sector. Many domestic manufacturers have undergone rigorous product development and approval processes to meet the demanding global Original Equipment (OE) standards set by renowned international brands, solidifying their position in the global market.
Since the implementation of the Standard Operating Procedure (SOP) in 2021, Sri Lanka has experienced a notable surge in the establishment of automobile and motorcycle assembly plants. Presently, more than fifteen such plants are operational, marking a significant stride forward for the industry. Looking ahead, the momentum is set to continue, with four additional assembly plants slated to commence operations within the next three months. Furthermore, an additional eleven assembly plants have been registered by the Ministry of Industries, underscoring the robust growth trajectory of Sri Lanka’s automobile sector. This promising expansion signifies a bright future for the industry, hinting at unprecedented prosperity and job creation opportunities for the nation.
