Sri Lanka to restrict 3-wheeler imports from India

Sri Lanka is likely to restrict the import of 3-wheelers from India. According to a media report, the Sri Lankan Transport Ministry has indicated that the move is being taken in the wake of increasing road accidents and traffic congestion.

Sri Lanka is an important export market for Indian companies and accounted for 14% of the total 3-wheeler exports from India in FY 2017. However, it must be noted that in 2016, it accounted for 30% of the total 3-wheeler exports from India. 

In recent years, 3-wheeler manufacturers have started exporting their products to South Asian, African and Latin American countries, which has led to less dependence on the Sri Lankan market.

According to the credit rating agency - ICRA, the import restrictions aren't expected to have a big impact on the domestic industry and losses are likely to be offset.

Source: Economic Times