ECONOMYNEXT – Sri Lanka’s Urban Development Authority will acquire 100 acres of private land in Gonapola Horana, for a tyre factory, promoters of the factory said.
Ceylon Steel Corporation, a privately held firm, will be given the land on a 99-year lease.
The firm has collaborated with Marangoni, an Itaian firm, to set up the tyre plant. The firm says 75 percent of the output will be exported and 25 percent sold in the local market.
Sri Lanka has raised import tax on automobile tyres, allowing Indian manufacture CEAT to get more market share and profits by curbing consumer freedom. CEAT’s local partner Kelani Tyres has been pushing for protectionist taxes. Import duties allow businessmen to exploit trapped domestic customer easily with the help of the state.
Meanwhile, Ceylon Steel Corporation said it eventually hoped to export up to a $100 million in tyres a year. (Colombo/Nov16/2016)