Friday, 18 September 2020 21:05

Government promotes automotive assembly with 30 percent local value addition

Sri Lanka Government will be promoting automotive assembly with locally secured components, in order to boost the industry and create better job opportunities.

The assembly of 100 vehicles will create more than 250 direct jobs and 100 indirect jobs. If 1000 vehicles are assembled, an average of 2500 direct jobs and 1000 indirect jobs will be created ensuring a solid and confident business environment for the manufacturers.

With the local vehicle assembly, component manufacturers will have a strong market to sell their products as well as improve product quality. It will also safeguard the interests of local automotive component manufacturers.

Dimantha Jayawardena, President of the Sri Lanka Automotive Component Manufacturers’ Association said, “Automotive components manufactured by our members are of the highest quality and conform to international standards.

SLACMA has submitted a 10-year master-plan to the Finance Ministry as a crucial step to take the Local Assembly Industry and Component Supply to the next level, as they seek quality certification from their regional counterparts to boost growth.

Currently, the Ministry of Finance and Ministry of Industry and Supply Chain is in the process of obtaining cabinet approval for the Standard Operating Procedure for local assembly and local auto-component manufacturing.

They are fast gaining recognition as OEM products by leading automotive manufacturers. Government has offered this industry policy as an incentive to promote the use of at least thirty-percent of the original components from Sri Lankan manufacturers.

(LIN)

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