Sri Lanka Gets $5mn Canadian Auto Parts Plant to Manufacture OEM Parts

23rd August 2010, www.news.lk

A Canadian Automative Firm specialized in Original Equipment Manufacture (OEM) is planning to invest U.S.$ 5 Million to establish a manufacturing plant in Sri Lanka. The Firm Matcor Automative Inc., is specialized in manufacturing body parts for almost all the auto brands including the leading American cars. The Company expects to use Sri Lanka as a strategic location to cater to the booming Indian auto market.

The Vice President of the Matcor is presently in Sri Lanka for negotiations with the Board of Investment officials and for finding a suitable location for establishing the plant.

The visiting Vice President of the Company has said that the Sri Lankan plant will be mainly manufacturing OEM body parts for India’s GM, Ford, Chrysler and Mercedes Benz, for export to India taking advantage of the Free Trade Agreement Sri Lanka has with India. The plant is expected to provide employment for about 500 workmen and the senior management of the plant will come from Canada.

The company has its presence in 16 locations in Canada, USA and Mexico. Apart from automotive operations, it has a fabrication unit which accounts for 30 percent of its revenue that manufacture construction, agriculture and off-road equipment.

Sri Lanka Good for Investments in Rubber-based Industries, IT, BPO and Auto Components

24th December 2009, www.thehindubusinessline.com

Indian investors could look at their neighbour Sri Lanka for investments in a wide range of sectors, including agriculture, dairy, fisheries and manufacturing sectors, according to Mr Vadivel Krishnamoorthy, Deputy High Commissioner of Sri Lanka.

After nearly three decades of strife, peace has come to Sri Lanka which is now looking to fully exploit the benefits of a liberalised economy Mr Krishnamoorthy said. Sri Lanka was among the earliest in South Asia to open up its economy in the 1970s. It now has a lot of catching up to do. The North and the East offer major investment potential in agriculture, construction and infrastructure.

Thrust areas

Sri Lanka offers scope for investments in other areas, including in rubber-based industries, IT, BPO and auto components – Indian automobiles are “everywhere” in Sri Lanka, he said.

Addressing a meeting organised by the Sindhi Chamber of Commerce, he said the Sri Lankan Government has created a favourable environment for investments including tax holidays which can extend up to 15 years for investments in North and East.

The time is ripe now for India and Sri Lanka to fully take advantage of the decade-old free trade agreement which covers over 4,000 products. Both countries should work together to finalise the comprehensive economic partnership agreement to extend trade relations, he said.