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Used cars turn to gold as economy skids on the edge

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By Amal Jayasinghe

Supermarket shelves are bare and restaurants can’t serve meals, but Sri Lanka’s economic crisis is a bonanza for used car dealers, with vehicle shortages pushing prices higher than a house in a nice area.

The island nation of 22 million is on the brink of bankruptcy, inflation is red hot and the government has barred a range of “non-essential” imports to save dollars needed to buy food, medicine and fuel.

In the car market, this two-year ban has kept factory-fresh automobiles off local roads, forcing desperate buyers to pay some of the world’s highest prices for beaten-up compacts and no-frills family sedans.

Anthony Fernando spent a recent weekend coursing through sales lots in the Colombo outskirts on behalf of his daughter, who has tried to find an affordable set of wheels for nearly a year.

“She was thinking that prices will come down,” the 63-year-old told AFP, but now she is “paying for procrastinating”.

Prices have gone “beyond the reach of a common person”, he said.

A five-year-old Toyota Land Cruiser was on offer online for an eye-watering 62.5 million rupees ($312,500) — triple the pre-ban rate, and enough to buy a house in a middle-class Colombo neighbourhood or a new luxury apartment in the city centre.

A decade-old Fiat five-seater with a busted engine that might be stripped for parts elsewhere was listed at $8,250 — more than twice Sri Lanka’s average yearly income.

“A car and a house are symbols of success,” said a grinning Sarath Yapa Bandara, the owner of one of the capital’s biggest dealerships.

“That is why most people are willing to buy even at these high prices.”

Car ownership remains a virtual necessity in the traffic-snarled streets of Colombo, where a ramshackle bus and rail network was already struggling with overcrowding.

The number of taxis has also fallen sharply, with drivers selling their cabs to cash in on the dizzying prices, and those still working charging double their old fares or more.

“You must have your own car,” said Udaya Hegoda Arachchi, another buyer preparing to bite the bullet at a dealership.

“We can’t expect prices to come down anytime soon, given the economic situation in the country,” he told AFP.

Covid has sent Sri Lanka into a tailspin, drying up all-important earnings from tourism and foreign remittances.

In March 2020 the government brought in a wide-ranging import ban — including for new cars — to stop foreign currency from leaving the country.

But the policy has not been able to staunch the outflow of dollars, and has instead left the nation struggling to source critical goods.

Food retailers have rationed rice, restaurants have shuttered because they cannot find cooking gas, and cash-strapped power utilities unable to afford oil have imposed rolling blackouts. Farmers have run out of fertilizer.

Rating agencies have warned that Sri Lanka might default soon although the government says it will meet its commitments. It is trying to renegotiate its Chinese debts with Beijing.

The import ban has also left car parts in short supply, meaning drivers are at risk of being stranded after a breakdown.

Ravi Ekanayake told AFP that his Colombo repair garage was doing a roaring trade from owners unable to afford the astronomical costs of switching to a new vehicle.

“But parts are scarce. It is a catch-22: You either get caught with an old car without parts or you don’t have the money to buy a new car.”

Financial analyst Murtaza Jafferjee said the prices also underscored a problem caused by excessive money printing by a cash-strapped central bank, with “too much money chasing too few goods”.

He said the prices were also increasing transport costs and adding to inflation, which hit a record 14 percent in December.

“When vehicles become unaffordable for a segment of society, their activities will be limited. Then we will also see a loss of economic output,” the CEO of JB Securities said.

“We are about to collapse and not many people appreciate the depth of the problem.”



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Landslide Early Warnings issued to the districts of Colombo, Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura

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The National Building Research Organisation [NBRO] has issued landslide early warnings to the Districts of Colombo, Gampaha, Kalutara, Kegalle, Nuwara Eliya and Ratnapura valid from 09:00 hrs on 23.05.2026 to 09:00 hrs on 24.05.2026

Accordingly,
LEVEL III [RED] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Deraniyagala, Ruwanwella and Dehiowita in the Kegalle district and Ratnapura, Ayagama, Kuruwita and Eheliyagoda in the Ratnapura district.

LEVEL II [AMBER] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka and Padukka in the Colombo district, Attanagalla in the Gampaha district, Palindanuwara, Ingiriya, Bulathsinhala and Horana in the Kalutara district, Yatiyanthota in the Kegalle district and Pelmadulla, Kiriella, Kalawana, Nivithigala and Elapatha in the Ratnapura district.

LEVEL I [YELLOW] landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Divulapitiya and Mirigama in the Gampaha district, Mathugama and Agalawatta in the Kalutara district, Bulathkohupitiya in the Kegalle district, and Ambagamuwa in the Nuwara Eliya district.

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Most people seeking green cards must now apply from outside US

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The US has announced a new policy that means most immigrants seeking a green card will have to leave the country and apply at an embassy or consulate abroad.

The US Citizenship and Immigration Services (USCIS) said on Friday that people seeking a change in status must do so through consular processing outside of the country “except in extraordinary circumstances”.

The move – a part of the Trump administration’s effort to curtail illegal immigration – closes a loophole that had allowed visa holders and visitors to apply for a green card while still in the US.

Critics of the policy say the longstanding system allowed families to stay together during the lengthy application process.

The new method could also make it difficult or impossible for some immigrants who leave the country in hopes of gaining a green card to return.

The USCIS policy memo states that people such as students, temporary workers or people on tourist visas need to go through the Department of State from outside of the US.

“When aliens apply from their home country, it reduces the need to find and remove those who decide to slip into the shadows and remain in the US illegally after being denied residency,” USCIS said, making the system “fairer and more efficient”.

On X, the Department of Homeland Security, which oversees USCIS, said: “The era of abusing our nation’s immigration system is over.”

“We’re returning to the original intent of the law to ensure aliens navigate our nation’s immigration system properly,” USCIS Spokesman Zach Kahler said.

“From now on, an alien who is in the US temporarily and wants a green card must return to their home country to apply, except in extraordinary circumstances,” he continued.

Kahler said the policy allows the immigration system “to function as the law intended instead of incentivising loopholes” and that visits “should not function as the first step in the green gard process”.

It is unclear whether pending green card applications will be affected.

A spokesperson for the USCIS told the BBC that as the policy is rolled out, “people who present applications that provide an economic benefit or otherwise are in the national interest will likely be able to continue on their current path”.

“Others may be asked to apply abroad depending on individualised circumstances,” it said.

Being a green card holder, or lawful permanent resident, allows a person to live and work permanently in the US. Obtaining one is a multi-step process that can take months to several years.

There are currently more than a million legal immigrants waiting for approval on their adjustment of status green card applications, according to the Cato Institute’s director of immigration studies.

Kahler argued that following the law allows the majority of cases to be handled by the US State Department at consular offices abroad and frees up USCIS resources to focus on processing other cases that fall under its purview – such as visas for victims of violent crime and human trafficking, naturalisation applications, and other priorities.

The move is consistent with longstanding immigration law and immigration court decisions, the agency said. Immigration officers are being directed to “consider all relevant factors and information on a case-by-case basis when determining whether an alien warrants this extraordinary form of relief”.

Michael Valverde, who was a senior official at USCIS under both Republican and Democratic administrations until his departure last year, said to the BBC’s US media partner CBS that Friday’s announcement would “disrupt the plans of hundreds of thousands of families and employers annually”.

“This is a largely unprecedented move that will limit lawful immigration to the US greatly,” Valverde said. “People who followed the rules faithfully now face tremendous uncertainty.”

The Trump administration has instated bans or restrictions on citizens from nearly 40 countries.

Another policy from the administration this year has paused all visa issuances to immigrant visa applicants from 75 countries.

Overstaying a US visa can lead to deportation, ineligibility for future visas and re-entry bans lasting up to 10 years, according to the US State Department.

[BBC]

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Flood warning issued to the Aththanagalu Oya basin extended until 0600AM on Monday [25]

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The warning mentioned in the flood warning message No. 01 issued for the Aththanagalu Oya basin on 22.05.2026 at about 5.30 am will be extended for the next 48 hours.

It is requested that residents in the area and vehicle drivers running through those areas  pay high attention in this regard by the . Disaster Management Authorities are requested to take adequate precautions in this regard

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