Volkswagen interested in Sri Lanka export manufacturing plant
COLOMBO (EconomyNext) – Germany’s Volkswagen has been trying set up a plant to produce vehicles for export for years but had not succeeded due to unspecified reasons, a statement quoted the German envoy to Colombo as saying.
German ambassador Jergen Morhard who had met deputy economic affairs minister Harsha de Silva Monday had said the country looked forward to becoming a friendly partner to Sri Lanka.
The ambassador was quoted as saying though Volkswagen, the second largest car maker in the world, "had strived since 2008 to start up a business to manufacture cars in Sri Lanka for export, it did not succeed for various reasons."
De Silva had said the new administration was ready to discuss such projects which will give high paying jobs to workers and raise household income levels.
De Silva had said the new administration will help create a social market economy.
The new administration has repeatedly promised investors a transparent regime with no under the counter payments to multiple parties.
Volkswagen which rose from the ashes of World War II was one of the firms that contributed to the so-called German economic miracle of the country’s social market economy, helping not only people in the country but also those abroad become mobile.
Mobility coming from a car or a motorcycle is an important factor in raising living standards and quality of life of families.
While English speaking countries and other former territories of the British Empire and Britain itself went downhill with Keynesian money printing, Germany became a light industry export powerhouse, backed by a strong currency.
The strong currency not only eliminated raw material and foreign currency shortages of the Nazi self-sufficiency era, but it also preserved household incomes, eliminating the strikes and industrial action which crippled industry in many countries that printed money and depreciated currencies.