"Due to the government's good investment policies, German based Volkswagen has decided to invest here, which is a giant step for the industrialisation of Sri Lanka," Volkswagen local agent and President of Senok Automobile (Pvt) Limited Noel Selvanayagam said at the agreement signing ceremony.

The assembly will be based in a 30 acre land at Kuliyapitiya. Initially they will assemble 500 units to supply to the local market and the training centre would train more than 2,000 skilled personnel on a request made by Prime Minister Ranil Wickramasinghe, Selvanayagam said. Under this agreement the investors will assemble vehicles in the 1000 cc to 2000 cc category, which will be diesel powered and including passenger cars, sports utility vehicles, multi utility vehicles or commercial vehicles.

Chairman BOI Upul Jayasuriya said that total value of this project will be an investment of US $ 26.5 million of which US$21 million will be invested in fixed assets within a period of 24 months, while US $ 5 million would be borrowed capital for the project.

"BOI is very keen to attract other leading automobile manufacturers into the country as the industry creates opportunities for the creation of local component manufacturers that can supply the building of a complex product," he said.

This investment is a land mark investment for the BOI's 30 years history and a giant step for the Sri Lanka's march towards industrialisation. Providing employment opportunities for 200 persons with high skilled technical knowledge and exposure, he said.

(dailynews.lk)