News

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

Published

5 years ago

2021/03/28

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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News

National SME Strategy Framework 2026 is critical because it brings policy consistency and stability to the sector – PM

Published

19 hours ago

2026/05/15

Priyan

The Prime Minister Dr. Harini Amarasuriya participated in the 2nd day of the dialog on “National SME Strategy Framework 2026” organized by the Ministry of Industry and Entrepreneurship Development held on Thursday [14th of May].

The official launch of the “National SME Strategy Framework 2026” to empower Small and Medium Enterprises (SMEs), was held on Wednesday (13) under the patronage of the Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, and Deputy Minister Chathuranga Abeysinghe.

The Framework has been developed by the Industry and Entrepreneurship Development Ministry, with input from the SME Advisory Committee and key system stakeholders in line with the national manifesto of “A Thriving Nation – A Beautiful Life.”

This framework creates the opportunity for the entrepreneurs to easily register their businesses, access modern technology, and obtain specialized financial facilities along with the advisory services that directly support the growth of entrepreneurs, departing from the traditional method free of charge.

The second day marks the dialog on the “National SME Strategy Framework 2026” focusing on the discussion into implementation and strategy to action featuring series of panel discussions.

During the event National SME Strategy Framework 2026 was presented to the Prime Minister by the Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe.

The Prime Minister stated that the country is implementing its transformative agenda during a period of global instability and disruptive global context stressing the importance of adaptation, sustainability and building resilience, particularly within the Small and Medium Enterprise (SME) sector in such context.

Underscoring the importance of the SME policy framework, the Prime Minister further stated that the government’s role is to ensure consistency, stability and collaboration within the sector.

The event was attended by the Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Deputy Minister Chathuranga Abeysinghe, Australian Deputy High commissioner to Sri Lanka, Ms. Ruth Baird and Secretary to the Minister of Industry and Entrepreneurship Development Mrs. J.M. Thilaka Jayasundara and develop and develop partners and representatives from business community.

[Prime Minister’s Media Division]

News

Opposition accuses govt. of weaponising tax laws

Published

21 hours ago

2026/05/15

Thilina Walpola

Sajith

… calls for modernising Inland Revenue Dept.

Opposition and SJB Leader Sajith Premadasa yesterday criticised the government’s proposed amendments to the Inland Revenue Act, claiming that a new provision in the draft legislation could unfairly lead to criminal action against ordinary citizens and small business owners over administrative tax-related matters.

In a statement, Premadasa said the public was “not angry about paying taxes” but was frustrated by what he described as unfair treatment under the proposed law.

He alleged that Section 185A of the proposed bill could make delays in filing tax returns or registration-related issues criminal offences, warning that struggling small-scale entrepreneurs could be treated in the same manner as individuals deliberately evading millions of rupees in taxes.

“That is wrong,” the Opposition Leader said.

Premadasa further accused the government of resorting to criminal action against people instead of reforming and modernising the Inland Revenue Department and simplifying tax compliance procedures.

He also questioned the government’s commitment to tackling corruption and financial crimes, asking why stronger measures had not been taken against money laundering, financial fraud and those accused of misappropriating public funds.

“Go after the corrupt. Punish real fraudsters. But do not weaponise the law against the common man,” he said.

Premadasa added that the Opposition would continue to resist legislation that undermined “fairness, proportionality, and the constitutional rights of the people.”

News

Floods, landslides affect 3,475 people

Published

21 hours ago

2026/05/15

Thilina Walpola

Adverse weather conditions prevailing across the country have severely affected 3,475 persons belonging to 1,113 families in seven districts, according to the Disaster Management Centre (DMC).The DMC said 1,310 individuals from 489 families had been relocated to eight temporary safety shelters due to the deteriorating weather situation.

The DMC also confirmed one death from the Koralepatthu South area in the Batticaloa District.

As of 10 am yesterday (14), a total of 88 houses and one business establishment had sustained partial damage as a result of the adverse weather conditions.

Authorities have urged the public in vulnerable areas to remain vigilant and follow safety instructions issued by disaster management and local officials as heavy rains continue to affect several parts of the country.

Meanwhile, the National Building Research Organisation (NBRO) yesterday extended landslide warnings for several districts across the country due to the prevailing adverse weather conditions.

According to the NBRO, Level 2 landslide warnings have been issued for Neluwa in the Galle District; Agalawatte, Baduraliya, Matugama, Horana and Walallawita in the Kalutara District; and Ratnapura and Pelmadulla in the Ratnapura District.

Level 1 landslide warnings remain in effect for several areas in the Badulla, Galle, Kalutara, Kandy, Kegalle, Kurunegala, Matale, Monaragala, Nuwara Eliya and Ratnapura districts.

The warned areas include Bandarawela, Passara and Hali Ela in Badulla; Thawalama, Elpitiya and

Niyagama in Galle; Ingiriya and Bulathsinhala in Kalutara; and multiple Divisional Secretariat areas in the Kandy District, including Poojapitiya, Deltota, Udunuwara and Pathahewaheta.

Warnings have also been issued for Bulathkohupitiya, Mawanella, Kegalle, Aranayake, Yatiyanthota, Warakapola and Rambukkana in the Kegalle District; Ridigama in Kurunegala; Rattota, Naula and Ambanganga Korale in Matale; and Wellawaya, Badalkumbura and Bibile in Monaragala.

In the Nuwara Eliya District, the warning covers Norwood, Ambagamuwa Korale and Kotmale, while Eheliyagoda, Kalawana, Kuruwita, Godakawela, Kiriella and Ayagama in the Ratnapura District have also been placed under alert.

The NBRO said the warnings were extended in view of further rainfall forecast by the Department of Meteorology and urged residents in vulnerable areas to remain vigilant and follow instructions issued by authorities for their safety.

Meanwhile, the water levels in several major river basins that had risen due to recent heavy rainfall are now receding following a decline in rainfall over the past 24 hours, the Department of Irrigation said.

Director of Irrigation (Hydrology and Disaster Management) L.S. Sooriyabandara said water levels in the Nilwala River, Gin Ganga, Kalu Ganga and Attanagalu Oya basins were showing a downward trend as rainfall eased.

He noted that water levels were declining in most areas, with the exception of the Millakanda area in the Kalu Ganga basin.

However, Sooriyabandara warned that the current improvement could be temporary, as the Department of Meteorology has forecast further rain in the coming days.

According to the Department, 18 of the country’s 73 major reservoirs are currently spilling over, while another 18 medium-sized reservoirs are also discharging water.

He stressed that the release of water does not indicate a major flood situation at present, but urged the public to remain vigilant and follow future advisories issued by authorities.

By Norman Paliahwadane and Chaminda Silva