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Another new investment in Sri Lanka shows market’s promise

World Cement,

Nepalese billionaire Binod Chaudhary is reportedly planning to install a state-of-the-art cement plant in Jaffna, eastern Sri Lanka. At a cost of US$75 million it has not yet been reported what the production capacity of the new plant will be, but it is likely to serve the reconstruction work underway in the region.

Following the end of the decades-long violence in the country, the reconstruction of the north and eastern areas that were badly affected by the conflict is a priority. Forbes recently reported that Sri Lanka’s economy is growing by 7.5% annually. Infrastructure development is being led by the government and the Central Bank of Sri Lanka, and the country is striving for an average per capita income of US$4000 by 2016, up from US$981 in 2003. Its location next to India and at the intersection of the busiest shipping lanes in the world will no doubt prove a draw to international investors. We have recently reported that Pakistan’s Thatta Cement is investing in new capacity in Sri Lanka, local company Tokyo Cement has announced plans to establish a new subsidiary in the country, and Lucky Cement is also reported to be looking to expand into Sri Lanka. It is certainly a market to watch out for.

Aside from other investments in various market sectors in Sri Lanka and elsewhere, the Chaudhary Group has also invested in a 1100 tpd cement plant at Dambak Deurali in Nepal.

Written by Katherine Guenioui.

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