A delegation from India’s Bajaj Auto group was in Sri Lanka last week for talks with the David Pieris Motor Company, to firm up plans to set up a joint venture motorcycle and 3-wheeler assembly plant at Ranna in the Hambantota District.

Director Marketing of the company Jagath Kulatunge told The Sunday Times FT that the new plant will be at an investment of Rs 700 million.

He added that the motorcycle and 3-wheeler market in Sri Lanka was not as big as India's. "So an investment decison was taken keeping all the factors in mind,” he said, adding that the plant will come up sometime next year. Mr. Kulatunge said that the capacity of the plant will be 425 units of motorcycles and 3-wheelers in two shifts, per day.

The Bajaj Auto delegation led by General Manager (Export Operations) Ashok Saxena held talks with David Motor Co. officials headed by Deputy Chairman and Managing Director Sumith Cumaranatunga, on the plan.