German car manufacturer Volkswagen agreed to set up an assembly plant in Sri Lanka, after it was offered an eight year tax holiday by the government reports Economy Next.
The plant, to be built in the South, will only be making cars for the local market within the first three years of operations, said Sri Lanka's Board of Investment (BoI).
According to BOI chairman Upul Jayasuriya, at least US$5 million of the US$26.5 million needed to set up the plant, will also be financed through loans, with the plant hoping to be operational in 30 months.
Last month Sri Lanka’s Deputy Investment Promotions Minister Eran Wickremeratne said the German company had initially refused to invest in Sri Lanka due to the previous government demanding bribes and commissions.
See more in our earlier posts:
Sri Lanka to receive nearly $4bn of FDI this year - Board of Investment (04 Aug 2015)
The plant, to be built in the South, will only be making cars for the local market within the first three years of operations, said Sri Lanka's Board of Investment (BoI).
According to BOI chairman Upul Jayasuriya, at least US$5 million of the US$26.5 million needed to set up the plant, will also be financed through loans, with the plant hoping to be operational in 30 months.
Last month Sri Lanka’s Deputy Investment Promotions Minister Eran Wickremeratne said the German company had initially refused to invest in Sri Lanka due to the previous government demanding bribes and commissions.
See more in our earlier posts:
Sri Lanka to receive nearly $4bn of FDI this year - Board of Investment (04 Aug 2015)
Bribes deterred German investors from Sri Lanka claims minister (14 July 2015)
Sri Lanka to get Volkswagen plant - Ranil (13 Jul 2015)
Sri Lanka misses fiscal deficit target in 2014 (03 May 2015)
Sri Lanka to streamline processes to lure more African and Asian FDI (21 April 2015)
Sri Lanka’s economic growth to decline, more FDI required – World Bank (16 April 2015)
Sri Lanka to reduce FDI barriers (29 March 2015)