19 February 2022 01:41 am Views - 147
The Ceylon Motor Traders Association (CMTA) yesterday raised concerns about the difficulties in establishing letter of credit (LC) facilities with regards to spare parts orders.
The CMTA said these unofficial restrictions by banks have begun to cripple Sri Lanka’s vehicle fleet maintenance, which would have a direct impact on goods and people transportation as well as the overall economy.
“If the transportation sector grinds to a halt, that would have a severe impact on the main revenue lines of the country such as exports and tourism, which are heavily reliant on the availability of transport,” a CMTA statement said.
“Many vehicle owners are resorting to dangerous patch repairs, usage of non-genuine spare parts and used spare parts imported from overseas junkyards. These practices place the safety of vehicle users and the public in great danger,” the statement added.
In addition to public safety concerns, the CMTA said these restrictions and delays of LC facilities have resulted in the inability for legitimate franchise holders to predict the supply or price of spare parts, creating uncertainty and panic across the
automotive market.
“The franchise holders, who have been battered by the import ban of almost two years, are now facing difficulties in managing their aftersales operations, which is the only revenue stream left to sustain their staff and overheads,” the CMTA pointed out.
Hence, the CMTA urged the policymakers to pay attention to the plight of the automotive industry and identify spare parts as an essential goods category to keep Sri Lanka’s ageing vehicle fleet functioning. Inability to maintain these vehicles according to their manufacturer-recommended schedules will result in greater repairs and breakdowns in the future, causing even greater foreign currency drain, the CMTA warned.
The CMTA is the only Ceylon Chamber of Commerce-affiliated trade body that represents vehicle manufacturers through their locally appointed franchise holders (commonly called ‘agents’). It is the most senior automotive trade association in the region. The members of the CMTA collectively employ and train thousands of Sri Lankan citizens while bringing in international best practices in engineering and management, developing a talent pool that is trained and employable internationally.