Controversial investor’s tyre factory taking shape
View(s):The Rigid Tyre Corporation (Pvt) Ltd factory being built at the BOI Wagawatte Industrial Park at Horana is expected to create 3,000 direct employment opportunities, according to an official statement. A BOI (Board of Investment) media statement, on the occasion of visit to the site by Malik Samarawickrama Minister of Development Strategies and International Trade, said the factory represents a total investment of US$250 million with the possibility of increasing to $300 million.
The Minister met with the investor Nandana Lokuwithana and was assisted by Mangala Yapa, Board member of BOI, Duminda Ariyasinghe, Director-General of the BOI and other senior BOI officials. In addition a number of key institutions including the Road Development Authority, Ceylon Electricity Board and other state institutions also participated. “The objective of the meeting was to look at all aspects and potential challenges a project of this magnitude, which is a joint Sri Lanka and Chinese investment, would face when it is completed in an estimated six months,” the release said.
The local investor, Mr. Lokuwithana, is a controversial figure having been associated with former President Mahinda Rajapaksa’s alleged business dealings.
The BOI said the project will adhere to all environmental protection measures. Since the company is located within the premises of the Wagawatte Industrial Park, an environmental approval has been obtained from the Central Environmental Authority (CEA) by an Environmental Impact Assessment (EIA). This complies with the National Environment Requirements. The company will also introduce advanced environmentally friendly technology.
The production of tyres will also boost the demand and create increased value for Sri Lankan natural rubber. Sri Lanka’s exports of rubber products including tires are worth $876 million (7.5 per cent of total exports). Minister Samarawickrama congratulated the investor and stated (according to the release), “we can see the development that is now taking place. Every effort must be made to ensure from the BOI that this project is monitored in every way and that very high standards are met.”
The minister added “when a project like this is operational it will send a very powerful signal to other enterprises to follow suit by investing. From our side we will ensure that this project will receive all the support needed, especially with some of the vital utilities that are required. We can also showcase this project as a success story to attract other global investors.”