According to official sources, Sri Lanka's car imports shot up from 5,762 in 2009 to 23,072 in 2010, thanks to strong economic growth and the government's decision to slash import duty on vehicles. Import barriers had been raised sharply in 2009 as part of an effort to conserve dwindling foreign exchange. A total of 359,243 new registrations of vehicles of various types were lodged in 2010, compared with only 204,075 in 2009.

In March 2011 a Sri Lankan firm, Micro Cars, the only company that designs and builds cars locally, announced plans to expand production of its Micro Panda line. Its executives described the local vehicle market as buoyant. They also unveiled plans to strengthen the company's presence across the island with new showrooms and service centres, in order to optimise after-sales service support.