National Freedom Front leader Wimal Weerawansa said that he is earnestly requesting the general public of this country to make the upcoming local government elections an opportunity to shine a red light on the Gaja Mithuru Kai regime.
Wimal Weerawansa made this request while participating in a media briefing held at the National Freedom Front headquarters in Battaramulla on the 5th.
Wimal Weerawansa, who revealed that an advisor to the government, who makes decisions above President Anura Kumara Dissanayake, is a director of an Indian motorcycle company, emphasized that the threat posed to the local motorcycle assembly industry by the gazette removing obstacles to vehicle imports should be addressed and steps should be taken to reverse it.
Wimal Weerawansa said the following:
“As you know, the government has issued a gazette notification today removing obstacles to vehicle imports. This gazette notification has been issued in a way that allows vehicle imports by removing certain obstacles and proposing various tax schemes.
Before the government came to power, the National People’s Power government claimed that it could create a situation where ordinary people could buy a vehicle. But when you look at this gazette notification, you can see that vehicles that are likely to be used by the general public have been subjected to a 200 percent price increase, as if they had been taxed at an excessive rate. Therefore, there is a complete contradiction between the promise made by the government and what is actually being implemented.
Today, we are raising a more serious issue. In 2021, when I was the Minister of Industries, a policy called S.O.P. (Standard Operating Procedure) was introduced for the welfare of those involved in the vehicle assembly industry in this country. It was fully implemented with the approval of the Cabinet. Initially, motorcycles were not included in the Standard Operating Procedure, but I ensured that motorcycles were included in this procedure. Through this, foreign-branded vehicles were assembled and manufactured in Sri Lanka. If there was local value addition of more than 20 or 25 percent, steps were taken to reduce the amount of tax relative to that value addition. This served as an incentive for the vehicle assembly industry.
When we introduced the SOP, there were only three vehicle assembly plants in this country. Today, there are 17 plants operating in the motorcycle industry alone. There is now a 20 to 25 percent increase in value addition. This could be a silencer, a seat, a tire, or any other component manufactured locally, allowing Sri Lankan workers to contribute to the vehicle manufacturing process. These 17 motorcycle industry-related plants alone have created more than 20,000 direct and indirect jobs. Additionally, 17 other motorcycle manufacturing plants from China and other countries, including various other brands, have announced their readiness to come to Sri Lanka and join the assembly industry. This shows that there has been a major revival in the local vehicle assembly industry, based on the decision taken by the Ministry of Industry in 2021.
What has happened now?
In the new circular issued by this government, as we know, even the Secretary to the Ministry of Finance had initially agreed not to include motorcycles in the list of vehicles exempted from import taxes. The assembly companies had also requested two things: either not to exempt motorcycles from taxation or to impose a high tax on imported motorcycles.
But what happened in the end?
You all know that there is a government advisor called Hulang. Is Hulang a scoundrel? I don’t know. This Hulang advisor was also part of the Gotabaya government earlier. This Hulang advisor is a board member of an Indian motorcycle company. At his request, motorcycles were included in the import exemption. As a result, the price difference between a locally assembled motorcycle and an imported motorcycle is now only Rs. 10,000. This tempts the average consumer to buy the imported motorcycle instead.
When they see the damage done to the 17 currently operating assembly plants, the 17 new investors who were ready to enter the industry will also withdraw. The existing industries will not be able to continue, and they will close. More than 20,000 people who directly and indirectly depend on this industry will lose their jobs.
Now, is this what the people expected when they brought this National People’s Power JVP government to power? Did they stand in line and vote for this? They promised to develop local industries and empower Sri Lankans. But today, according to the gazette notification issued, the motorcycle assembly industry will be in serious danger. By closing these plants, the jobs of over 20,000 workers will be threatened.
They say one thing and do another. In the end, it is not even President Anura Kumara Dissanayake who makes the government’s decisions, but rather the wind that blows from the Chamber of Commerce. This shows that the government is disregarding local industries and following an economic policy dictated by foreign interests.
The government now claims that they will obtain the largest loan ever received from the World Bank. But before taking power, did this government need to take loans to run the country? They once said borrowing was unnecessary—yet today, they are borrowing at a speed of 60 to 70 kilometers per hour. Before the election, they promised one thing, and after the election, they are doing another.
All three JVP MPs opposed the Economic Transformation Act brought by Ranil Wickremesinghe at the request of the IMF. They even went to the Supreme Court against it. But now they say they will implement the Economic Transformation Act with amendments. The promise made before the election was one trick. The promise made now is another trick.
This contradiction between what was said before and what is being done now is becoming increasingly clear. The Vehicle Import Gazette has jeopardized the motorcycle assembly industry, despite its success.
We earnestly request the general public to use the upcoming local government elections as an opportunity to turn the red light on this scoundrel-friendly regime. Those who are struggling with rising costs, who cannot afford a kilo of rice, who are forced to buy fewer groceries due to high prices, should not be deceived by this government’s tricks.
We call upon the public to vote for progressive, nationalist, and patriotic forces in the upcoming local government elections and prevent extreme right-wing forces from taking control.
Finally, this gazette notification must be changed. The threat to the motorcycle assembly industry must be removed. If motorcycles are to be imported, a higher tax should be imposed on them to protect the local motorcycle industry.
Wimal Weerawansa urged the government to take immediate steps to safeguard local vehicle manufacturers and prevent further damage to Sri Lanka’s automobile industry.
