Horana tyre factory construction recommences – Project agreement signed with BOI

Horana tyre factory construction recommences – Project agreement signed with BOI

Written by Keshala Dias

27 Mar, 2017 | 7:35 pm

Construction on the controversial tyre factory in Horana has recommenced.

Chairman of the Board of Investment, President’s Counsel Upul Jayasuriya said the agreement for the project with the BOI has been signed.

However, the 99-year lease for the land the factory is to be constructed on, has not been signed as yet.

On January 05, the foundation stone was laid for the construction of a tyre-manufacturing factory with business tycoon Nandana Lokuvithana as its investor.

However, as construction on the factory was suspended for weeks, BOI Chairman President’s Counsel Upul Jayasuriya said the details of the investment on this project were re-evaluated and was reported to the Cabinet.

The Board of Investment said the investor had agreed to deposit Rs. 210 million upfront as a lease premium as opposed to the Rs. 170 million, which was pledged earlier.

The investor has also agreed to allocate an additional Rs. 320 million to develop the site infrastructure, a sum the BOI would have had to spend.

Though the lease agreement on the project has not been signed as yet, construction on the factory continues with the initial agreement signed by the BOI.

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