Maruti Suzuki shows interest in setting up assembly facility in Sri Lanka

Maruti Suzuki has expressed interest once again in setting up an a ssembly facility in Sri Lanka. This was confirmed by Upul Jayasuria, chairman of the board of investment for the  nation.  The company had previously expressed interest in this regard in 2013 but it is believed that talks did not move forward due to taxation issues.

Previously, it had aimed at setting up the plant near Hambantota, a location that would allow them to use the local port  for export purposes. It seems possible that this will be the final location if the plant is green lighted. Reports suggest that Sri Lanka is the second largest market for Maruti  Suzuki and the setting up a CKD facility would allow them to bring down the cost of the car through reduced taxes.

The India made cars are currently imported into Sri Lanka through the Al-Futtaim group and the list includes the entire small hatchback range as well as vehicles like the Ertiga MUV, Ciaz sedan and the SX4 sedan.  

Source:DailyNews