Aug 29, 2016 (LBO) – The proposed project to set up a Volkswagen car plant in Sri Lanka has temporarily been halted, Deputy Minister of Public Enterprise Development Eran Wickramaratne said.
“Due to the international issues they had to face, they have decided not to invest in this project in Sri Lanka for now,” Wickramaratne told a local TV station.
Sri Lanka’s Board of Investment in April said they helped to secure land for the setting up of the Volkswagen assembly plant with a total investment of 26.5 million dollars.
The project earlier planned to assemble vehicles in the 1000 cc to 2000 cc category which includes passenger cars, Sport Utility Vehicles, Multi Utility Vehicles and commercial vehicles.
In March this year, the US Federal Trade Commission sued Volkswagen for false advertising.
Volkswagen recently agreed to spend more than 1.2 billion US dollars to compensate its dealers for their losses from the automaker’s diesel emissions scandal.