A land in the Kuliyapitiya area has been secured for setting up the Volkswagen assembly plant in Sri Lanka, Sri Lanka’s Board of Investment (BOI) announced on Monday citing that this was a through the successful facilitation by the BOI Chairman, Upul Jayasuriya and his officials, working closely with the Ministry of Lands.
“This land will be taken over by the BOI and would be formally handed over by the investment promotion agency to M/s Senok Automobile (Pvt) Ltd., for the assembly of cars manufactured by Volkswagen AG, the renowned German Company,” the BOI said in a statement.
The agreement to assemble cars was signed on August 15, 2015 by Jayasuriya and President of M/s Senok Automobile (Pvt) Ltd., Noel Selvanayagam. This will be a BOI Section 17 Agreement where the investor will assemble vehicles in the 1000 cc to 2000 cc category.
“These vehicles will be diesel powered and include passenger cars, Sport Utility Vehicles (SUV), Multi Utility Vehicles (MUV) or commercial vehicles,” the BOI said explaining that initially these vehicles would be marketed locally for a period of three years and thereafter the vehicles manufactured will be exported to overseas markets.
“There is also a potential for export vehicles which would be petrol/electric/hybrid vehicles to be built without the concessions that have been given for assembling diesel vehicles. The total value of this project is an investment of US$26.5 million of which 21.5 million will be invested in fixed assets within a period of 24 months,” the BOI statement highlighted.
Volkswagen is a leading German automobile manufacturer based in Wolfsburg, Germany. The Company was founded in 1937 and produces cars, trucks and buses. The company revenue was Euro 197 billion in 2013. It is best known for Iconic models such as Beetle, Golf and Passat.
“The uniqueness of the project would be the inflows of German advanced automobile technology into the country and creating of job opportunities for the local youth,” the BOI pointed out.