Permission to set up vehicle assembly plants in Sri Lanka for locally sold vehicles has been reportedly suspended and the government has appointed a committee to further study the granting of permission.

The long term expectation of the government is to encourage these assembly plants to add some value to the vehicles assembled for the local market.

India’s Maruti has proposed to set up an assembly plant in Sri Lanka and has held several rounds of discussions.

If Maruti is able to set up an assembly plant in Sri Lanka, with this government decision then it has to add some value to its motor vehicles for the local market.

While Micro Motors is already assembling vehicles in Sri Lanka it recently began its first automated assembly plant at the industrial estate on Polgahawela.