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Owners of small cars driven round the bend due to non-availability of tyres

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by Suresh Perera

A shortage of automobile tyres in the market is driving motorists round the bend amidst complaints that dealers still holding stocks have inflated prices in the backdrop of existing import restrictions.

The worst affected are owners of small cars, many of whom derive an income by operating passenger taxi and affiliated services.

“We have no option but to ground our vehicles and be deprived of earnings to care for our families”, some passenger taxi services operators complained.

There is also the risk of facing legal action as the traffic police are now examining tyres of passenger vehicles on the roads following the bus accident at Passara, they noted.

Moreover, in the case of an accident, there is every possibility that insurance claims will be dishonored in case the tyres are found worn out, they further said.

The market is not wholly dependent on locally manufactured products, as the import restrictions apply only to radial tyres for rim sizes 12 and 13, and for motorcycle and three-wheeler tyres, says Ravi Dadlani, Managing Director, CEAT Kelani Holdings, a key player in the local tyre industry.

“That’s the crux of the matter. Tyres for rim sizes 12 and 13 are used in small cars, which are aplenty in the country not only for private use but also in the taxi services business, the operators pointed out.

“How can we run hires with worn out tyres and endanger the lives of passengers especially on wet days?”, they asked.

There is no restriction on the import of all other tyre types and sizes, including those for trucks and buses, Dadlani said.

With regard to ‘import restricted sizes’ – cars rim sizes 12 and 13, motorcycles and three-wheelers, CEAT produces 31,800 car Radial tyres in 12 & 13 sizes per month (whereas the market demand for these sizes is 32,000) meeting 100% of the market requirement, he explained.

If that was so, where have all the tyres pumped into the market gone?, the operators queried. “With dealers claiming they have not received fresh stocks, we have been going around in circles to find the right (tyre) sizes”.

Even refurbished tyres are being now being sold for fancy prices due to the shortage. Unlike earlier, there are no small tyres dumped on roadsides now because everything is being refurbished as prices are good due to the demand, they asserted.

“They wanted Rs. 5,000 for a size 13 refurbished tyre with no guarantee on performance. Perhaps, road accidents have shot up because some motorists use them as there’s no option”, a taxi service driver remarked.

It’s a risk no doubt, but some people prefer to take the challenge rather than keep their vehicles grounded and go hungry, he said.

CEAT also produces 100% of the requirement for three-wheeler tyres and 50% of the requirement for motorcycle tyres, the Managing Director said.

“Together with other local manufacturers of three-wheeler and motorcycle tyres, we can meet 150% of Sri Lanka’s demand in these categories”, he assured.

“People who talk of statistics should go around and see for themselves the reality of the situation on the ground”, the operators suggested.

Those who are holding stocks are selling them at exorbitant prices, they claimed.

The dealers are provided a price list covering all sizes and types of tyres by each manufacturer and are entitled to discounts of up to, or more than 30%. They are expected to pass on a substantial discount to the end customer based on the purchase terms, and to our knowledge the majority of genuine establishments still do so, Dadlani said.

There may be a price list, but that does not necessarily mean it happens that way. The shortage in the market has seen the emergence of brokers and middlemen who can procure tyres for customers at fancy prices, the operators further asserted.

Those who sit in comfort and dish out figures should do a round and find out what’s happening in the marketplace. They will then be able to come to terms with reality, they said.

Dealers say that when they order 100 tyres, for example, they receive only 25 and these are sold in double quick time due to the demand, they added.

“Our supplies to each dealer are on the basis of an established demand pattern based on the size of the market served by each outlet. This has worked well over many years. However, some dealers are now arbitrarily demanding more tyres to build up a larger inventory and may complain if they do not receive the increased volumes they are ordering”, Dadlani pointed out.

“It is also possible that a particular tyre size may not be available on the day it is ordered, but given the production cycles we operate, that size will become available within that month. We are in touch with cab companies and have not received complaints of vehicle fleets being grounded due to lack of tyres”, he continued.

A tyre dealer in Colombo The Sunday Island spoke to said local brands were not available, but offered a size 14 Chinese product for Rs. 9,900 each. Another dealer said he has only Dunlop to fit rim sizes 13 and 14 and quoted Rs. 11,750 for each.

The Managing Director said that CEAT has the capacity to produce 100% of the car and van radial tyre requirements for rim sizes 12 and 13, and together with other local manufacturers, 150% of the requirement of motorcycle tyres and 150% of the requirement for three-wheeler tyres.

Asked whether CEAT increased prices after the import restrictions were enforced, he said the company reduced prices in December 2019 and kept them unchanged in 2020 and until January 2021. During this period, natural rubber prices in the world market increased by over 50%. As a result, CEAT revised prices by 11.8% in January 2021 purely to absorb the raw material cost/other costs increases.

Asked whether the temporary closure of the CEAT manufacturing plant due to some employees testing Covid-19 positive lead to a disruption in the supply chain and reflect on market availability of its products, Dadlani replied, “In line with the government mandated health and safety protocols and in the interest of employee safety, we suspended manufacturing for seven days in February this year. This did result in an unavoidable disruption of supplies, considering that we manufacture about 3,200 radial and motorcycle tyres per day. We however made up for the production loss through additional production on Sundays”.

 

 



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“Badhu Shakthi 2026” National Tax Week begins

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The inaugural ceremony of “Badhu Shakthi 2026” (“බදු ශක්ති 2026”) National Tax Week, organised by the Revenue Administration Reform and Modernisation Unit of the Presidential Secretariat with the objective of strengthening State revenue generation and accelerating the country’s future development process, was held on Monday (06) morning  at the Presidential Secretariat under the patronage of Speaker Dr Jagath Wickramaratne.

“Badhu Shakthi 2026” is a year-round national programme aimed at transforming the negative public perception of taxation into a positive one while fostering a culture of voluntary tax compliance. To mark its commencement, a National Tax Week will be observed across the island from 6 to 10 July.

A nationwide media and public awareness campaign will be conducted in parallel, including the distribution of leaflets and a range of promotional activities designed to educate the public directly and encourage greater tax compliance.

Addressing the inaugural event, Speaker Dr Jagath Wickramaratne stated that “Badhu Shakthi 2026” is not simply a tax collection campaign but a national initiative aimed at cultivating responsible citizens who love their country.

Further elaborating, the Speaker said:

“Today marks a significant milestone in our country’s future development and economic stability. The strength and sustainability of any sovereign nation depend on its economic independence. Taxation is one of the key instruments for strengthening State revenue and driving national development.

However, taxation has long been viewed negatively by many people. That perception was largely shaped by those responsible for collecting taxes and by successive administrations. When people develop a sense of national responsibility, their attitudes begin to change. For many years, taxes were regarded as a burden. History has shown us that tax evasion occurred on a significant scale, and it must be acknowledged, however reluctantly, that such practices often enjoyed political patronage.

In the past, the public had little understanding of how their tax contributions were utilised. Taxpayers lacked a clear vision of the benefits derived from the taxes they paid. The present Government has succeeded in changing this situation by fostering a more positive public attitude towards taxation. I wish to pay tribute to all taxpayers who contribute towards the Government’s national development agenda.

Today, people have confidence that the taxes they pay are being put to good use. Expressways, highways and power infrastructure projects are now being implemented using domestic funds. There is a sense of pride among the public that construction of the Kandy Expressway has commenced without obtaining loans from any external source. Cabinet approval has also been granted to commence work on the Kurunegala–Galewela Road.

Today, Sri Lanka has grown stronger as a nation capable of financing development activities through domestic resources rather than relying on foreign borrowing.

In ancient times, the country’s great stupas, reservoirs and irrigation networks were built through the collective contribution of the people. Likewise, Sri Lanka can become a prosperous and developed nation only through collective effort. The taxes collected today are being utilised for the welfare of the people. This was clearly demonstrated when the Government allocated Rs. 500 billion in response to Cyclone Ditwah. In addition, substantial benefits are now being provided to the public through the President’s Fund. Educational assistance is being extended to schoolchildren across every corner of the country. All of these initiatives are being financed through domestic resources.

It is essential that the public are made aware of the real benefits derived from tax revenue and of the development projects being implemented. This will strengthen public confidence in the transparent use of tax revenue. The primary objective of this national programme is to broaden the country’s tax base, improve tax compliance, reduce tax evasion and foster a positive attitude towards taxation. If everyone pays their fair share of taxes, the tax burden borne by others can be reduced.

We do not build a beehive with a single bee. It is created through the collective effort of thousands of bees, making it a remarkable achievement. Likewise, ‘Badhu Shakthi 2026’ is not merely a tax collection campaign. It is a national movement to cultivate responsible citizens who love their country. I extend my sincere appreciation to everyone who has dedicated themselves to making this important initiative a success.”

Labour Minister and Deputy Minister of Finance and Planning Anil Jayantha Fernando:

Labour Minister and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said that a proper understanding of taxation among citizens would enable Sri Lanka to make greater progress towards economic and social transformation.

He noted that while individuals naturally pursue their own personal goals and aspirations, many of these objectives cannot be achieved in isolation. The success of any society depends on cooperation and collective effort.

He further stated:

“Today, paying taxes has become a much simpler process. As a result, tax collection is now carried out more efficiently and systematically. At the same time, the Government recognises its responsibility to ensure that tax revenue collected fairly is managed prudently and utilised for the benefit of society. If the Government fails to demonstrate sound financial discipline, people will lose confidence and become reluctant to pay taxes. This was evident in the past.

Accordingly, the Government has introduced a tax administration system founded on strong fiscal discipline. We will not tolerate fraud, corruption or waste. If we are to rebuild this country, every citizen must contribute willingly and with a sense of national responsibility. This should not be driven solely by legal obligation. We are confident that the people of Sri Lanka will fulfil this responsibility.”

Deputy Minister of Economic Development Nishantha Jayaweera, Director General of Customs Wimal Liyanagama, Director General of Excise M.B.N.A. Premaratne, and Commissioner General of Inland Revenue Rukdevi Fernando also addressed the gathering.

Among those present were Director General of Public Relations to the President Dharmasiri Gamage, senior officials of the Presidential Secretariat, the Ministry of Finance, Sri Lanka Customs, the Department of Excise, the Inland Revenue Department, as well as taxpayers and other invited participants.

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Renovated Narahenpita Railway Station reopens to the public under the ‘Dream Destination’ initiative

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Bimal Rathnayake, Minister of Transport, Highways and Urban Development

The Narahenpita Railway Station, which has been upgraded and refurbished under the ‘Dream Destination’ programme to modernise and improve facilities at 100 railway stations across the island through a public-private partnership, was officially reopened to the public on Monday (06) morning  under the patronage of Minister of Transport, Highways and Urban Development Bimal Rathnayake.

The ‘Dream Destination’ programme is being implemented as a sustainable initiative by the Clean Sri Lanka Secretariat, under the guidance of the Ministry of Transport, Highways and Urban Development and the supervision of the Department of Railways.

Located on the Kelani Valley Railway Line between the Cotta Road and Kirulapone suburban railway stations, Narahenpita Railway Station had remained without refurbishment for many years and had deteriorated into an unsafe facility with inadequate passenger amenities. The station serves a large number of commuters travelling to and from the Narahenpita area, where numerous public and private sector institutions are located.

Accordingly, refurbishment work commenced on 27 September 2025, under the leadership of the Clean Sri Lanka Secretariat, with MAGA Engineering (Pvt.) Ltd. providing financial support and undertaking construction work, while NIO Engineering contributed technical expertise and related services.

The refurbishment included the construction of a new pedestrian overhead bridge, installation of a new station roof, extension of the second passenger platform, improvements to the sanitation and sewerage systems, internal and external repainting, installation of new passenger seating, renovation of the railway quarters, upgrading of the lighting system, resurfacing of the station access road with asphalt, and a range of other improvements to the station and its surrounding infrastructure.

MAGA Engineering (Pvt.) Ltd. invested Rs. 40 million in the project.

Addressing the ceremony, Minister Bimal Rathnayake said that the primary objective of the ‘Dream Destination’ initiative is to improve railway services by enhancing passenger facilities, while noting that upgrading the railway service’s human resources and physical infrastructure is a major undertaking.

He emphasised that the Government’s plan is to resolve long-standing issues while systematically improving the entire railway network, adding that several measures have already been introduced to enhance the efficiency of public transport services.

The Minister further announced that the initial steps towards introducing an electric railway service will be taken next year as part of the expansion of the railway network. The first phase will focus on the Colombo–Panadura, Colombo–Makumbura, and Colombo–Ragama corridors.

Minister Rathnayake also stated that, alongside improvements to public transport, the Government has initiated a collaborative public-private development process to upgrade related infrastructure. He described the ‘Dream Destination’ initiative as another commitment aimed at improving people’s daily lives, ensuring their safety and securing their future, while also incorporating public views and aspirations.

Among those present were Member of Parliament Attorney-at-Law Lakmali Hemachandra, Deputy Mayor of the Colombo Municipal Council Hemantha Weerakoon, United National Party Colombo Municipal Councillor Sunanda Liyanapathirana, Additional Secretary of the Clean Sri Lanka Secretariat Eng. S. P. C. Sugeeshwara, Additional Director General Kapila Senarath, Director H. P. S. Shantha, Director (Social Sector) Chinthaka Rajakaruna, Assistant Director Nishantha Alwis, Regional Coordinator Shashi Piyushan, General Manager of Railways Ravindra Pathmapriya, Additional General Manager (Operations) Chandrasena Bandara, Deputy General Manager (Traffic) N. J. Indipolage, Chief Engineer (Industries) Priyantha Deegala, Co-Managing Director of MAGA Engineering (Pvt.) Ltd. Megha Kularatne, Chief Executive Director Piyadasa Madarasinghe, Project Coordinator Sanjeewa Peiris, Maradana Station Master H. P. K. Pushpa Kumara, Narahenpita Station Master R. M. Rohana Upul Kumara, Station Master (Operations) Madhusha Gunawardhana, together with senior officials from the public and private sectors and a large gathering of invitees.

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Bus Sector Clustering Pilot Program on route numbers 170, 177, and 190

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Bus transport is the primary mode of transport that fulfills  the daily transport requirements of the country, and this service is provided by the Sri Lanka Transport Board and a large number of independent private bus operators.

Many problems have arisen, such as excessive competitiveness, poor adherence to the prescribed timetable, a large number of operators on the roads, unsafe behavior of bus operators,
inconvenience encountered by the passengers, traffic congestion, service imbalance, and inefficient use of resources due to the long-standing operational system in providing public passenger transport services.

As a successful solution to these problems, many countries in the world have introduced a ‘Bus Sector Clustering Program,’ and the bus service is operated under joint management in the same transport corridor or geographical area.

It has been acknowledged that the introduction of bus sector clustering, a methodology that involves the clustering of unified and coordinated bus services on interconnected routes under a single management, could be used to achieve the provision of an effective passenger transport service and the minimization of most operational and social issues, as opposed to the operation of a single operating unit.

Accordingly, taking into account the matters furnished by the Minister of Transport, Highways, and Urban Development, the Cabinet of Ministers has approved the implementation of the
pilot program relevant to the bus sector clustering program on the bus corridor covering routes 170, 177, and 190 initially, with the participation of related stakeholders, and to expand the project further based on the results of the pilot project.

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