Maruti Suzuki mulls assembly facility in Sri Lanka once again

Maruti Suzuki is reported to be reconsidering setting up an assembly plant in Sri Lanka.

Earlier in 2013, Maruti Suzuki was thinking of opening a facility in the island nation (click here to read report). It had considered Hambantota, as the location for this plant. Hambantota is located at a distance of about 250 km from Colombo, the country's capital city. Maruti had planned to use Hambantota harbour for re-export. The company had to put off its plans due to some tax issues with the then government.

However, the positive developments between India and Sri Lanka have got the company to reconsider setting up a plant in Sri Lanka.

Additionally, Sri Lanka is the second largest export market for Maruti Suzuki. The increase in tax on imported vehicles in the country is another likely factor for the company to consider local assembly of cars.

Source: Daily News