Car manufacturer Maruti Suzuki India is once again looking at setting up an assembly plant in Sri Lanka,Board of Investment Chairman Upul Jayasuriya said.
Speaking to Daily News at the opening of the India Sourcing exhibition at the Convention Centre on Monday he said that talks are on once again and they have shown renewed interest.
Maruti Suzuki India had initially announced it was contemplating setting up a plant in Sri Lanka in 2013 and the preferred location was Hambantota. This was to use the Hambantota Harbour for re- export. However due to some tax issues with the then government the project did not materialise. He said that the positive developments between India and Sri Lanka is one plus factor for them to reconsider Sri Lanka.
The increase in tax on imported motor vehicles too is another factor for this.
Sri Lanka is currently the second largest market in terms of sales of Maruti Suzuki India.
Maruti Suzuki India, a leader in passenger vehicles sold a total of 120,824 units in November 2015, a growth of 9.7 per cent. This includes 110,599 units in the domestic market and 10,225 units in exports. The company had sold a total of 110,147 units in November 2014.