Since 2008 there have been very high import duties on new and used cars, most of which come in from Japan.
In October 2009, only 370 vehicles were customs cleared, representing a sharp drop compared with October 2008, when new tariffs were imposed.
The tariffs were brought down in June this year, drastically changing the dynamic for car buyers.
Sri Lanka's government agreed to lower tariffs and instead expanded the country's tax base after International Monetary Fund intervention.