A US $100 million project to produce the largest ever cement silos in the country commenced early this month in Colombo, according to officials.“About two weeks ago the construction of the plant at D.R. Wijewardena Mawatha, in Colombo for the joint venture between Lanka Cement Ltd. (LCL) and the UK based AML products Ltd began,” Sisira Paranagama, Chairman LCL told the Business Times.

He noted that production in this plant which is on a one acre land will commence by the end of the year, while the expected output for a month is 10,000 metric tones of silos. “This is only for the first stage. We plan to enhance the capacity in the medium term,” he added. Mr. Paranagama noted that the silos will especially be used for Uthuru Wasanthaya - the Northern development programme which aims to develop the North and the East.

“Road development, canals and bridge building will be concentrated at first (in the Northern development) with the initial production from this plant,” he said, explaining that this project will facilitate a large cost savings to businessmen in Colombo and the North.

“This is mainly because we can price this product at a concessionary rate. We will decide the price when the production begins, depending on the macro situation at the time, but it will be priced at a lower rate than the price (at the time),” he said.