Sri Lanka Brodcasting Corporation

Sun03262017

Last updateSat, 25 Mar 2017 7am

Business News

Foundation stone for the Volkswagen factory in Kuliyapitiya will be laid this afternoon by the president.

 

Proving a pledge given by the unison government, a Volkswagen motor car manufacturing factory will be opened in Sri Lanka. It will be established in 50 acre land plot at Labuyaya in Kuliyapitiya. Laying of foundation stone for the factory will be held under the patronage of President Maitripala Sirisena this evening. This factory was an idea of Prime Minister Ranil Wickremasinghe. Volkswagen AG’s local joint venture partner is Senok Automobiles and the total investment will be 26.5 million dollars. Out of this 21.5 million dollars will be invested in fixed assets within a period of 24 months, the Board of Investment said. The company will initially assemble vehicles in the 1000cc to 2000cc category and these vehicles will be diesel powered and include passenger cars, Sport Utility Vehicles, Multi Utility Vehicles or commercial vehicles. The agreement to assemble cars was signed by BOI Chairman Upul Jayasuriya and Senok Automombiles Chairman Noel Selvanayagam in April 2015. The uniqueness of the project in addition to bringing investor confidence for Sri Lanka and FDI’s it will also bring in advanced German automobile technology into the country and create job opportunities for the local youth.” Volkswagen, the second largest car maker in the world had strived since 2008 to start up a business to manufacture cars in Sri Lanka for export, but did not succeed for various reasons. But the efforts made by the relevant authorities have become fruitful during the present government’s rule.

Local News

 

Foreign News