Tokyo Cement to enhance production in Sri Lanka through additional US$ 12 million investment
Tokyo Cement Company (Lanka) PLC has reportedly stated that it expected to sign a Supplementary Agreement with Sri Lanka’s Board of Investment (BOI) to enhance the production of Ordinary Portland Cement and Hydraulic Cement by one million tons per year at the existing location at Cod Bay, China Bay in Trincomalee.
The Company has reportedly stated that based on preliminary estimates, the project would cost approximately US$ 12 million and translated at the current exchange rate it works out to Rs. 2.28 billion and will be financed mainly by internally-generated funds and bank borrowings.
The project is expected to be completed in 24 months, local media reports stated.
The company has also said it would not be entitled to any exemptions from Income Tax and Customs Duties on importation of project-related items required for the expansion unit.
OSL take:
The expansion of business in Sri Lanka by Tokyo Cement is indicative of the level of business confidence in the country. Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region. Sri Lanka’s economy has shown resilience through the years and several key economic sectors are already showing signs of returning to normalcy. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/15122020/Z_3 |