In recent years, a growing number of Sri Lankans in Japan have entered the used car export business(UHB 2025-08-06）). In major port cities, Sri Lankan-owned export companies are increasingly visible, with their presence noticeable at auto auctions and vehicle yards. This is no coincidence. Behind this trend lie a range of interrelated factors, both domestic and international. Most notably, the recent easing of vehicle import restrictions by the Sri Lankan government has created fresh momentum. This essay explores the reasons why many Sri Lankans are choosing to engage in used car exports from Japan, taking into account Japan’s market conditions, Sri Lanka’s domestic policies, and the immigration framework in Japan.
1. Strong Demand for Japanese Vehicles in Sri Lanka
There has long been high demand for Japanese-made used vehicles in Sri Lanka. Renowned for their durability, fuel efficiency, and ease of repair, brands like Toyota, Honda, and Suzuki are extremely popular—not only in urban areas but also in rural regions. With high prices on new cars and currency fluctuations that inflate import costs, used cars are often the only realistic option for average Sri Lankan consumers.
Of particular significance is the Sri Lankan government’s decision to resume vehicle imports in February 2025—for the first time in nearly five years. These restrictions had been implemented in 2020 to address a foreign exchange crisis. The relaxation of these rules has reopened the market and created new opportunities for those already based abroad, especially Sri Lankans in Japan who have prior experience in the vehicle trade and are well-positioned to resume or newly launch export operations.
2. Japan’s Advantageous Used Car Market
Japan’s strict vehicle inspection (shaken) and tax policies encourage owners to replace their vehicles after only a few years. As a result, many well-maintained, low-mileage vehicles are put up for sale at reasonable prices. These vehicles are highly attractive to overseas buyers seeking quality at a lower cost. Moreover, Japan’s national auto auction system and the availability of export intermediaries make it relatively easy for foreigners to source and ship vehicles.
Japan’s robust infrastructure—port facilities, customs systems, shipping logistics—also contributes to a smooth export process. These conditions lower the barrier to entry for foreigners looking to start a business, making the used car export trade especially appealing to aspiring entrepreneurs like Sri Lankans in Japan.
3. A Pathway to the “Business Manager” Visa
One key factor drawing Sri Lankans to this industry is Japan’s immigration policy. Specifically, the “Business Manager” visa allows foreign nationals to legally operate a business in Japan provided they meet certain requirements—such as capital investment and a credible business plan. The used car export model, with its low startup costs and relatively fast turnover, offers a clear path to meeting these criteria.
Some immigration consultants and legal advisors even recommend used car exports as a visa-eligible business for Sri Lankan nationals. As a result, many Sri Lankans have come to equate starting a business with entering the used car export industry.
4. Strong Community Networks and Shared Knowledge
The Sri Lankan community in Japan is tightly knit, and information is widely shared among its members. When one person succeeds in the used car export business, their experience and knowledge are quickly disseminated through social media and messaging platforms. This creates a ripple effect where others feel confident enough to follow in their footsteps.
In some cases, the business becomes a family operation, with members in Japan handling sourcing and logistics, while relatives in Sri Lanka manage local sales, registration, and customer service. This kind of cross-border family enterprise is a distinctive strength of the Sri Lankan diaspora.
5. Policy Shifts in Sri Lanka: Controlled Easing of Import Restrictions
As mentioned, the Sri Lankan government resumed vehicle imports in early 2025, a move widely seen as a cautious reopening of the market after years of economic hardship. While the import ban helped stabilize foreign reserves, it also created a vehicle shortage and inflated prices domestically. The 2025 policy change was not a full liberalization but rather a “controlled easing”, with strict conditions.
For example, importers must register and are subject to various taxes and penalties for late compliance. Unregistered individuals can only import one vehicle per year, and failing to register within 90 days results in a monthly surcharge of 0.3% of the vehicle’s CIF value—capped at 45%. Despite these hurdles, the reopening itself was a major signal for Sri Lankan exporters abroad to restart operations.
For Sri Lankans in Japan who had retained contacts and infrastructure, the move represented a timely opportunity to re-enter the trade under improved conditions.
6. Limited Employment Opportunities and a Desire for Independence
Many Sri Lankans in Japan originally came as technical interns or international students. However, they often face limited options for long-term employment or work visa renewal. Frustrated by restrictive labor conditions, some seek independence through entrepreneurship.
The used car export business aligns with these aspirations, allowing for greater autonomy and self-determination. Moreover, entrepreneurship is culturally respected in Sri Lanka, making this an attractive route for many who value self-employment.
Conclusion
The growing involvement of Sri Lankans in Japan’s used car export industry can be attributed to multiple interconnected factors: (1) high demand for Japanese vehicles in Sri Lanka, (2) the favorable conditions of Japan’s used car market, (3) the compatibility with Japan’s “Business Manager” visa system, (4) strong community support and collaboration, (5) the resumption of auto imports under regulated conditions in Sri Lanka, and (6) a desire for freedom from limited work options.
The 2025 easing of import restrictions in Sri Lanka has undoubtedly reignited interest and participation in the trade, especially among those with prior experience or existing networks. Moving forward, Japanese authorities must strike a balance between supporting legitimate business activity and preventing visa misuse or paper-company fraud. For many Sri Lankan nationals in Japan, the used car export industry represents not only a livelihood but also a bridge between two nations shaped by trade, migration, and opportunity.