By: John S. Morlu II, CPA
Sri Lanka is one of the most fascinating places I’ve visited. It’s like a riddle wrapped in a coconut leaf, dipped in curry, and driven away in a very expensive used Toyota.
Let me explain.
This is a country with deep history, beautiful beaches, clever people, and serious brains.
At one point, it was one of the wealthiest nations in South Asia — full of potential, tourism, tech talent, tea, and trade.
But in 2022, things took a strange turn.
Sri Lanka defaulted on its international loans for the first time in its history. Yes — the country that sent Ceylon Tea around the world couldn’t send interest payments to its lenders.
So what happened?
Bad economic decisions. A mix of poor planning, tax cuts, tourism drops, and trying to do too much, too fast. The economy collapsed. Fuel ran out. Power cuts were normal. People stood in line for basics. Leaders resigned. Protesters took selfies in government offices.
It was wild.
But here’s the twist: just two years later, Sri Lanka is bouncing back — with confident leadership, stronger international partnerships, and people ready to build again.
Now, let’s get to the really strange part.
The Real Estate Roller Coaster… and the Car Carnival
In most places around the world, houses go up in value, and cars go down. That’s how economics usually works.
Not in Sri Lanka.
Here, the real estate market is taking a nosedive — some property prices have dropped by up to 60%. Beautiful homes in big cities are sitting empty. Prices are slashed. Buyers are waiting. It’s like a real estate clearance sale.
Meanwhile…
Used cars are going UP in value.
Yes. Appreciating. Like fine wine. Or bitcoin. Or rare Pokémon cards.
Why? Because of one simple number: 300%.
That’s the import tax on cars. Want to bring in a new car from Japan or Germany? Multiply the price by three. That’s the final cost.
A Toyota that costs $20,000 in the U.S. might cost $60,000 or more in Sri Lanka.
So what happens?
People cling to their old cars like national treasures.
A used 2012 car might sell for more than a brand new one in other countries.
Cars are investments now. Like land. Or gold. Or mango trees.
Fun Facts and Ridiculous Truths
- A friend told me he bought a car 7 years ago, drove it across the country, spilled curry on the seats, and sold it for more than he paid. Try doing that anywhere else.
- Another man listed his old Honda as “Sri Lankan Bitcoin” — the value only goes up, he said.
- One woman told me her car got into a small accident and she still made a profit. “It’s pre-dented now, so less stress,” she joked.
- Real estate agents have become negotiators, therapists, and fortune tellers. “Yes, the price is down, but spiritually, this land is priceless,” one agent told me while offering me lemon water and unsolicited property horoscopes.
- Tourists often ask: “Why is that house on the beach $100,000, but that 2005 Corolla is $45,000?”
Locals just smile and say: “Welcome to Sri Lanka.” - Mechanics are now part-time economists. One told me, “Every oil change is an investment in your retirement fund.”
- Car theft? Extremely rare. No one wants to steal something that might double in value next week — it’s too risky.
Paradox Nation, But With a Smile
Sri Lanka is a land of paradoxes:
- It crashed, then rose.
- It sells luxury tea, but couldn’t afford gas.
- Its real estate is tanking, but its used cars are thriving.
- It once made headlines for chaos — and now it’s quietly becoming Asia’s comeback story.
You’ll walk through ancient temples, pass stray dogs that don’t bark, and then see a 15-year-old car that costs more than your college tuition.
And you’ll love every minute of it.
Final Thought:
If you want to learn about economics, go to business school.
If you want to understand economics upside down, come to Sri Lanka.
Here, the laws of supply and demand still work…
They just have a sense of humor.
About the Author
John is an entrepreneur, strategist, and founder of JS Morlu, LLC, a Virginia based CPA firm with multiple software ventures including www.FinovatePro.com, www.Recksoft.com and www.Fixaars.com . With operations spanning multiple countries, John is on a mission to build global infrastructure that empowers small businesses, entrepreneurs, and professionals to thrive in an increasingly competitive world. He believes in hard truths, smart execution, and the relentless pursuit of excellence. When he’s not writing or building, he’s challenging someone to a productivity contest—or inventing software that automates it.
