Feb 08 2016

COLOMBO These days, visitors to Sri Lanka largest city are in for an unexpected juxtaposition of old and new: On the one hand, colonial-era architecture and other vestiges of British rule; on the other, an abundance of shiny Japanese hybrids cruising the streets.

The sight came as something of a surprise to this reporter. After all, this was not Japan or the U.S. West Coast, where pervasive environmental awareness has created an ideal market for green vehicles. It was all the more surprising considering that Sri Lanka is an emerging economy with a per capita gross domestic product of around $3,800.

     Susil Wijayaweera, a driver for guests at a Colombo hotel, owns a Toyota Axio. The compact hybrid sedan has never gone wrong and is purse-friendly, the 58-year-old said, giving his trusted business partner a pat.

He purchased his Axio, a used model imported from Japan, in August 2014. According to the sticker on the windshield, issued by the Japanese transportation authorities, the vehicle was scheduled for its first safety inspection in July 2015, which means it was registered as a new car in Japan in July 2012.

But while the car was technically used when he bought it for 5 million Sri Lankan rupees ($35,000), Wijayaweera said that fact didn't bother him. That's because in reality, the vehicle was practically new at the time, with an odometer reading of just 108km.

High excise duties, which top 100% for some models, mean even used automobiles in Sri Lanka are extremely expensive.

But professional drivers like Wijayaweera are not the only ones purchasing their own sets of wheels. In the six years since the end of its civil war, Sri Lanka has rapidly rebuilt its economy, resulting in a remarkable increase in the numbers of wealthy and middle-income households that can afford to buy their own cars.

MOST WANTED   Japanese cars are particularly in demand because of widespread confidence in their quality and reliability.

Sri Lanka used passenger car sales came to 56,000 units in 2015, double the previous year, according to data compiled by JB Securities, a local brokerage. Almost all of those were Japanese-built vehicles.