The All Island Brand New Motorcycle Sales Dealers’ Association Colombo and Gampaha Districts say that the ban gazetted by the government in the import of motorcycles to the country will have grave consequences and will affect the livelihood of over 100,000 direct and 500,000 indirect dependents.
Addressing a media gathering in Colombo on Tuesday the All Island Brand New Motorcycle Sales Dealers’ Association voiced their total dismay in the haphazard decision taken by the government to ban the import of motorcycles which they claim is a common man’s vehicle.
Over 100,000 directly dependent people will be severely affected due to the extension of the ban which was imposed in March for a period of three months. The association claims that this import ban has been indefinitely extended by the government putting in stake the livelihood of over 500,000 involved in the small and medium scale Motorcycle industry serving as sale dealers, shop owners and its employees, technicians and service providers and trainees and their dependents. Similarly, the economy of employees and their dependents in finance, insurance and motorcycle spare part production will also be badly hampered, the association pointed out.
The associations claimed that from August onwards the situation will further aggravate with the exhaustion of stocks and they will run out of business which will result in the inability to pay shop rentals, employee wages and loan repayments.
The association noted further that motorcycle users are those of low income earners in the country and 35% purchase motorcycles to indulge in small and medium scale businesses. Furthermore, in the backdrop of Covid pandemic the common man restored to motorcycles as a precaution to avoid public transport and to maintain social distancing as instructed by health authorities. The association questioned the rationale of the government’s decision to ban motorcycles imports in such a backdrop.
The association pointed out that even if the ban was lifted today for a period of six months no money will be moving out of the country as they would be making purchases opening LC’s. The suppliers provide them motorcycles on the ground of LC’s issued by banks and it would take nearly 8 months for money to be transferred out of the country.
They also questioned as to who will take responsibility for the negative impact the ban will have on the economy when considering the Rs 122 billion contribution the motorcycle industry makes to the economy annually and Rs 40 billion tax revenue which goes to the coffers annually.
Therefore the association urged the government to call off the ban without further delay.
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