New openings for rent-a-car industry

Ramani Kangaraarachchi

It is time to expand the huge potential in the rent-a-car business in the country to maintain the positive image of Sri Lanka.

Rent a Car Association (RACA) President Krishan Perera said the Government has requested RACA to provide over 100 luxury cars to transport Indian film stars for the IIFA 2010, festival in June.

He said the rent-a-car industry did not expand in the past due to the situation that prevailed in the country. “But now new openings are emerging and the country should act fast to make use of this opportunity. Otherwise tourists coming to Sri Lanka may carry an adverse message about the country’s transport system.

The Rent-a-Car Association has eleven members islandwide. It has only around 2500 vehicles so far and most of them need to be replaced. Industrialists are keen to expand the business but the challenge is the unaffordable taxes imposed on imported vehicles and high cost of spare parts.

Perera said in Singapore the system is the Government gives tax concessions to Rent a Car owners to import vehicles and in turn Rent a Car people have to give those vehicles when the Government wants them for various high profile functions at a nominal cost with the driver and fuel.

Sri Lanka also should introduce a system like that because the country expects a huge increase in tourist arrivals in the near future specially from India. Therefore , a good transportation system has a huge impact towards building the country’s image.