India’s Tata Nano, billed as the world’s cheapest car, began its first export sales Sunday by entering the Sri Lankan market – but with a price tag nearly three times what it is at home.

The cheapest no-frills Nano costs $8,486 in Sri Lanka, compared to about $3,000 for a basic model in India.

"We have started accepting bookings from today for the first 500 cars imported to Sri Lanka," an official of Dimo, the Colombo agent for Tata, said.

He said the price in Sri Lanka was due to high import duties and local sales taxes.

The Tata Nano generated worldwide interest when it was launched in 2008.

"We have already formulated plans for its introduction in several countries over the next few years," P.M. Telang, Tata’s managing director, said.

Sri Lanka reduced car duties by almost half in June last year, but then raised taxes in April to stem a flood of car imports.

When the Nano was launched it was expected to create a vast new market segment in India, a nation of 1.2 billion people, but reality has fallen short of the hopes.

AFP