The proposed Volkswagen plant which is to be set up in Kurunegala will initially target the local market for three years before exporting automobiles worldwide, The Nation Gain learns.
Accordingly, the much anticipated agreement between the Finance Ministry and representatives of Volkswagen International was signed last Tuesday (4).

Initially, the plant will cater to the local automobile market and would assemble semi-knock down units, which would be brought into the country.

However, it is learnt that one of the conditions laid in the agreement was that the renowned automobile firm has to export a stipulated number of vehicles after the three years of its operation in Sri Lanka in order to help increase export revenue to the country.