Rs.1.5bn allocated to establish dedicated industrial estate to boost automobile and rubber exports

• Experts have consistently identified automobile manufacturing as a key revenue sector for govt.
• Michelin Tires, global tyre manufacturing giants have urged SL to consider establishing a rubber manufacturing zone

 By Nuzla Rizkiya

The government yesterday announced plans to establish an industrial estate dedicated to manufacturing automobile components and rubber products, in an effort to improve Sri Lanka’s export competitiveness in the sectors.

For the initiative, spearheaded by the Industries Ministry, President Anura Kumara Dissanayake proposed an investment allocation of Rs.1.5 billion in Budget 2025.

“A significant level of investment in domestically value-added automobile manufacturing and rubber product manufacturing is crucial to meet the demand required by the components manufacturing industry,” Dissanayake said in his budget speech.

Industrial experts have consistently identified automobile manufacturing as a key revenue sector for the government, given the country’s strategic location, which has significant potential to connect major global supply chains between East and West.

Moreover, global tyre manufacturing giants such as Michelin Tires have urged Sri Lanka to consider establishing a dedicated rubber manufacturing zone, given its reputation as one of the world’s top natural rubber producers.