Monday 21 December 2015

Volkswagen to go ahead with assembly plant at Kuliyapitiya-Premier

German automaker Volkswagen's global diesel emission cheating scandal will not have a negative impact on the company plans to invest in an assembly plant at Kuliyapitiya said Prime Minister Ranil Wickremesinghe.

He disclosed that this plant would have being set up even earlier if not for a US $ 5 million bribe which was demanded by members of the former regime of Mahinda Rajapaksa. "Volkswagen decided not to invest in Sri Lanka after this demanded of a five million dollars bribe," Wickremesinghe told Parliament during the committee stage debate of the budget.

"I have spoken to the German ambassador and the Volkswagen authorities and they have assured me that there are not changes to their plans," Wickremesinghe said.

Board of Investment Chairman, Upul Jayasuriya speaking to Daily News Business said the land in Kurunegala too has now been allocated for them.

"Volkswagen has agreed to invest US$30 million to set up a vehicle assembly plant of semi-knock down units in Sri Lanka," he said. Jayasuriya said that the controversy in Europe may give them an additional opportunity for them to concentrate in Asia and this plant will help them to peruse this goal.

Senok Automobile is the local agent for the project. As Volkswagen is currently the world's leader in automobile manufacture, overtaking Toyota of Japan, this project is a very high profile one and a statement about Sri Lanka's growing attractiveness as a destination for investment.(SS) 
www.dailynews.lk

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