One of the world’s top automobile manufacturers and a leading carmaker in Germany, Volkswagen International, is to invest a US $ 30 million to set up an assembling plant in Sri Lanka, with an agreement to the effect expected to be inked in the coming weeks, the Board of Investment (BoI) of Sri Lanka said last week.

Chairman, BoI, Upul Jayasuriya had made this revelation during an interview with Bloomberg last week. Accordingly, the agreement with the German-based automobile manufacturer would be signed to set up a plant for the assembly of semi-knock down units.
The move to sign the agreement with the carmaker was first brought to limelight by Deputy Minister of Policy Planning and Economic Affairs who stated that Volkswagen would set up a plant in Kurunegala after the signing of the Memorandum of Understanding (MoU).

However, the amount of investment was not revealed at the time the announcement was first made.

De Silva when contacted by The Nation Gain stated that the discussions pertaining to the agreement were in its final stages and would be signed in two to three weeks. He had stated that the plant will be established with a view to export units in a few years.

“If we get this one done it certainly will be the biggest brand to come to Sri Lanka in many years and will give a huge boost to investor confidence,” he had said.

Dr. De Silva had met with the German Ambassador regarding the matter soon after assuming duties as Deputy Minister earlier this year.

Meanwhile, the German Embassy in Sri Lanka also stated that discussions with regard to the agreement were underway but were unaware of the status of the talks.