India wants Colombo to cut levy on automobile import
Clearly unhappy over the decision of the Sri Lankan Government to impose fresh import duty on automobile exports from India, the Government, on Monday, indicated that it would explore the option through diplomatic channels to prevail upon Sri Lanka to bring down the import tariff as such a move could hit Indian vehicle exports to the Island nation.
“India is mulling various options to deal with the situation. One of the options is to approach purely diplomatically, and request the Sri Lankan Government because it is a win-win situation if they cut down the tariff,” Additional Secretary in the Commerce Ministry, Rajeev Kher told reporters on the sidelines of a FICCI function here.
The move by Sri Lanka is likely to hurt exports from India and has put the automobile industry in a quandary as Sri Lanka is very important market for the Indian automobile companies.
“Sri Lanka is a very important market as far as cars and commercial vehicles are concerned. Obviously, we are concerned about it. We believe that the very substantial rise in import tariff in Sri Lanka is going to adversely affect our car exports to that country,” he added.
Recently, the island nation increased import duties on vehicles by almost 100 per cent, which has adversely impacted exports from India. “Last year, India had exported vehicles worth $6 billion out of which automobiles worth $800 million had been sold in the Sri Lankan market. Now this has almost gone,” Society of Indian Automobile Manufacturers (SIAM) Director General Vishnu Mathur said.
Sports utility vehicles
Earlier, the increase in duties affected small cars, two-wheelers and three-wheelers exports from India. Just two weeks before, they had increased duties on sports utility vehicles as well.
India had planned to host an Auto Expo in Sri Lanka but that had to be postponed keeping in mind the present situation on the automobiles front.
Source: The Hindu
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indian cars no need important to Sri lanka.We remember what south indians politicals persons what did for Sri lanka past times.Indians need only from Sri lanka money not for any other ways.
I am very glad 100% tariff on Indian cars has hit their vehicle exports to SL. Their cars are tin pots just as their Bajaj 3 wheelers are. We have to hit their 3 wheeler export to SL also. Let India learn a strong lesson that SL is not their colony to be ruled over and to be pushed over by them. Enough of all this ‘big brother’ talk by some misguided people. It is a cliche we must get rid of soon as well. I hope the GOSL remains steadfast and not budge from its decision as it has affected import of all motor vehicles from other countries as well. We should not grant India special concessions. Let us never forget that India went back on their promise to us to veto US resolution against SL at UNHRC conference.
We should now move ever closer to importing trains, buses, lorries and cars from China, as their goods are superior and they give us better concessions unlike India, who only wants to grab as much as they can from us. China is our real friend and not two-faced India who sides with the imperial West against us.
Thanks for Mr Nicholas Dias you have writen good comments!Keep go…………….
This is not politics.You should’nt involve politics and business .
If business in not linked with politics, I wonder why Indian car manufacturers got the Indian politicians involved in this case rather than getting the business people to discuss the matter.
Taxes were increased by the government in the budget for a financial planning requirement of the country. Budget was prepared by politicians and therefore politics cannot be separated from business.
We have a car manufacturer in SL, why we need cars from India? Its correct to impose 100% tariffs as we required to encourage local investors to boost and foreign to come and invest too.
It’s a must to invite investors to build a factory in SL and do rather than importing, it will create job opportunities to SL people as well.
So by right GOSL can request them to have a plant in SL and will providing tax reliefs for certain period. If they don’t agree then we can ignore this request what they made.
Great news; according to our wise man Mr ND, we substitute the rubbish we imported from India with the rubbsih from China!
Motor vehicles made in China have been banned in developed countries because they use asbestos based sealing materials! Sri Lanka would be a lovely place to dump Chinese junk and with the profits, the Chinese can make vehicles that comply with safety standards in European countries.
Mr Dias wants us to be guinea pigs with short lifespans!!
This is totally untrue. A falacy. Enemies of China are issuing this false propaganda against China.
Infact, there are European companies in China that have invested in China to produce many goods for the European market in accordance with Western standards. Even medical drugs and other medical supplies in Europe are produced in China and widely imported in Europe and used in Europe. Similarly, clothes, electronic goods, mobile phones etc of Chinese origin are used in Europe and all over the globe. Chinese vehicles, ships and trains are already in use in Europe.
The bogey of asbestos etc have been raised by China’s enemies. Could it be India? Infact, SL is still using asbestos based roofing materials imported from India. When are we going to stop it? India is our enemy dumping rubbish in SL at a high price.