CMTA deems Sri Lanka’s electric vehicle transition agenda unrealistic

• Lacking infrastructure and ecosystem pointed out as key reason
• Says countries with better infrastructure haven’t set immediate 100% EV adoption targets, considering practical challenges
• Notes that transitioning to EVs now could strain forex outflow and govt. revenue
• Urges govt. to include plug-in hybrid, hybrid, and petrol vehicles in migrant worker scheme

By Shabiya Ali Ahlam 

As Sri Lanka embarks on an ambitious journey towards de-carbonising the economy, and adopting electric

vehicles (EVs) is a crucial facet of that effort, the Ceylon Motor Traders Association (CMTA) said the agenda seems rather unrealistic.

CMTA reasoned its stance stating that when taking into account the current local context, the necessary ecosystem and the infrastructure to facilitate the use of EVs are yet to be fully developed in Sri Lanka.
To-date, countries with more well-established infrastructure than Sri Lanka have not set targets for 100 percent adoption of EVs immediately. This is primarily due tothe impracticality of realising such an agenda, even in the next five years, the CMTA noted.

“Switching to EVs now would add more pressure on the forex outflow of the country as well as government revenue. While CMTA agrees that the future of mobility will be electric, we propose that Sri Lanka aligns its passenger electric vehicle policy with the rest of the developing countries and plan the road map to achieve 100 percent electric cars from 2035 and not before,” CMTA Chairman Charaka Perera told a breakfast meeting hosted by the association, in Colombo yesterday.

Founded in 1919, 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’.
The local motor industry is still very much inclined towards the importation of vehicles with internal combustion engines. As a result, EVs lack the support of local agents, leading to potential challenges such as the absence of manufacturer warranties and repair facilities offered through local agents.
Further, spare parts for most of the EVs are also scarce in Sri Lanka at present, largely due to import restrictions and shortage of foreign currency.

“If the (local) agent does not import, the country has to spend a substantial amount of foreign exchange to get spares for these models, which is not the case with conventional units,” noted Perera.
He added that the news about an impending shortage of power generation for the next six months will be escalated with the influx of EVs.

Considering all the challenging aspects pertaining EV adoption, the CMTA called on the government to include plug-in hybrid, hybrid, and petrol vehicles to the migrant worker scheme.
“This would actually benefit the majority segment of migrant workers as such vehicles are well accepted by the masses,” said Perera.