Sri Lankan Minister visits US$ 250 million tire factory project in the BOI’s Wagawatte Industrial Park
Minister of Development Strategies and International Trade of Sri Lanka, Malik Samarawickrema has reportedly visited the Rigid Tire Corporation (Pvt) Ltd factory site which is being built at the Board of Investment (BOI) Wagawatte Industrial Park with an investment of US$ 250 million with the possibility of increasing to as much as US$ 300 million.
According to the BOI, the project will adhere to all environmental protection measures. Since the company is located within the premises of the Wagawatte Industrial Park, an environmental approval has been obtained from the Central Environmental Authority (CEA) by an Environmental Impact Assessment (EIA). This complies with the National Environment Requirements. The company is to also introduce advanced environmentally friendly technology.
In economic terms the project is to create 3,000 direct employment opportunities and possibly three times as many indirect jobs. In addition new opportunities for local entrepreneurs have arisen including the construction of dormitories, transport, supply of materials and other services.
The production of tires will also boost the demand and create increased value for Sri Lankan natural rubber.
The Minister has met with the investor Nandana Lokuwithana and was assisted by Mangala Yapa, Board member of BOI, Duminda Ariyasinghe, Director General of the BOI and other Senior Officials of the Board.
The objective of the meeting according to reports was to look at all aspects and potential challenges a project of this magnitude, which is a joint Sri Lanka and Chinese investment, would face when it is completed in an estimated six months.
“We can see the development that is now taking place. Every effort must be made to ensure from the BOI that this project is monitored in every way and that very high standards are met. It is for this reason that we have brought together not just the BOI but also the Central Environmental Authority, the Ceylon Electricity Board, Road Development Authority and the Water Board together with key officials of the BOI to look at all aspects of this project an ensure that it is successfully completed,” the Minister has said.
“When a project like this is operational it will send a very powerful signal to other enterprises to follow suit by investing. From our side we will ensure that this project will receive all the support needed, especially with some of the vital utilities that are required. We can also showcase this project as a success story to attract other global investors,” he has added.
OSL take:
The US$ 250 million project to set up a tire manufacturing plant in a BOI industrial zone is an indication of the investments that are flowing into Sri Lanka. Given the concessions receives by Sri Lanka in the EU and US markets for locally manufactured tires, would provide a good market for tires. Sri Lanka’s exports of rubber products including tires are reportedly worth US$876 million (7.5% of total exports). Therefore, foreign businesses looking at setting up operations in Sri Lanka could look at entering the manufacturing sector for the export market given the many FTAs and trade concessions enjoyed by the island nation.
| Article Code : | VBS/AT/20180726/Z_3 |