Sri Lanka vehicle registrations hit a historic new high of 66,664 up 147% from last year, with 2 and 3 wheeler registrations doubling from a last year, according to vehicle registry data.

JB Securities, an equities brokerage in Colombo said in an analysis that motor cycle registration hit 42,221 in March, up from 163 percent from 15,997 and three wheelers which are mostly used as taxis were up 104 percent from a year earlier to 12,347. In February 2015 only 7,994 vehicles were registered. Motor car registrations were up  245% from a year. The financing share of cars were 56.7 percent, 2-wheelers 41 percent and three wheelers 92 percent, according to JB Securities data.

Sri Lanka’s interest rates are now at lows after three decade and analysts who are watching credit and liquidity trends have warned that higher government consumption was pushing domestic demand up and higher interest rates were needed to correct the imbalance. Sri Lanka’s central bank however loosened monetary policy on April 15, cutting policy rates by 50 basis points despite loose fiscal policy. The Central Bank has also been engaging in type of ‘quantity easing’ by steadily releasing temporarily sterilized excess liquidity, which have disappearing through the balance of payments at alarming speed.