Sri Lanka’s foreign direct investment (FDI) is set to boost this year with India’s Mahindra Group, and Ideal Motors Colombo opening their vehicle assembly plant in Horana in July, Minister of Development Strategies and International Trade Malik Samarawickrama had recently told reporters.

Minister Samarawickrama had made these comments at the launch of the first Electric Three Wheeler, Mahindra Treo and a range of commercial vehicles and buses conforming to the latest BS-4 emission standards to the Sri Lanka market. The Minister had further said that the total investment for the project would be US$ 50 million and would also open up new green collar jobs to youth.

Accordingly a joint venture plant between Sri Lanka's Ideal Motors and Mahindra and Mahindra of India will begin assembling 100 mini-SUVs and US $ 50 million assembly plant has a capacity of 1,000 units a month, according to Ideal Motors officials who will be a 65% stakeholder in the plant with Mahindra owning a 35%. Further the plant is to initially produce KUV100 mini SUVs.

Minister Samarawickrama had further said that government is keen to promote blue and green economy and requested Mahindra Group to train Sri Lankan youth in technical skills which is important for building the future job market. He had further stressed that the introduction of an electric three-wheeler too was a very timely move by both Mahindra Group, India and Ideal Motors Colombo.

- Reporting by Devendra Francis