Opening a new chapter in Sri Lankan automotive industry, a Tokyo based high-tech research and development startup is planning Sri Lanka’s first ever large, industry scale Electric Vehicle (EV) manufacturing facility, Ministry of Industry and Commerce said.
The proposed EV manufacturing operation is to take off by producing Sri Lanka’s first ever smart, “EV tuk-tuks.”
The startup from Tokyo is also setting up international standard EV charging systems known as “micro-grid” stations across the country, as part of their hi-tech transfer to Sri Lanka.
A top Japanese investment team led by Chairman of Tokyo based Future Science Research Inc. (FSRI) Akihiko Matsumura and consisting of key executives of FSRI, along with high ranking former Japanese officials is now in Sri Lanka for the project’s initial groundwork.
The Chairman stressed their long term operational interests in Sri Lanka and Sri Lanka-Japan cooperation when he met with the Minister of Industry and Commerce Rishad Bathiudeen on 1 May in Colombo.
“We are not coming to Sri Lanka because of the availability of resources -such as cheap labor. We are not coming here to make inexpensive products either – but we are entering due to our long term vision, well established history of Sri Lanka-Japan cooperation, and the need for us to have a good base from where we can win in the competitive automotive world,” Matsumura said.
“We are not looking for conventional production or assembly either-we want to go with cutting edge tech. We look to team up with many Lankan firms in joint ventures. As a start we are looking to launch the local EV industry by introducing new innovations to Sri Lankan vehicle market. Our entire (proposed) output is for the Sri Lankan market and we can consider exports after meeting local market requirements. One of the major advantages for Sri Lanka by enlisting our company is that unlike large global vehicle manufacturing corporations, we are quick to respond to the market,” he added.
Matsumura added that his team’s arrival in Colombo is also due to the favorable impressions he received about Sri Lanka from President Maithripala Sirisena’s recent visit to Japan.
FSRI’s is also the owner and Supreme Advisor of Japan’s 3DOM Inc, supplier of one of world’s best solid electrical vehicle batteries with long life, high safety, density, and usage ratios.
“We propose to start Sri Lanka’s first ever eco-green EV three-wheeler and motor-bike production facility and that will also be our first ever venture producing a full EVs by ourselves anywhere in the world outside of Japan. In addition we also like to set up a cutting edge research and development (R&D) unit here. This R&D can work on setting up electricity micro-grids in the country to power EVs and other location based electricity requirements, away from the load of the main grid. More importantly our proposed eco-green EV manufacturing facility will enhance Sri Lanka’s automotive industry profile” Matsumura added.
Minister Bathiudeen, welcoming FSRI’s plans to launch the new project in Sri Lanka said the new venture is innovative and it will be a great step forward for Sri Lanka’s automotive sector,
Promising to extend fullest cooperation to get the project off the ground, the Minister said the project will involve both Sri Lanka’s Board of Investment and his Ministry.
Noting that already 85 Japanese FDI projects are in Sri Lanka employing 10,000 Sri Lankans the Minister said the local business chambers consulted to link local JV partners for the new project
He further said that once the production started, the additional production, can be exported to the Indian and Pakistani markets using Sri Lanka’s FTAs.
“Since our President is also supporting environment preservation, your pro-green technology will be valuable for our sustainable industrial development plans,” the Minister added.
Chairman Matsumura and his team did not reveal any details of their planned investment values in the proposed EV initiative.
In the 10 year period of 2007-2017, Sri Lanka received Japanese FDI investments totaling $ 273 million. Among the 85 Japanese private sector projects in operation in Sri Lanka at present are semiconductors, printed circuit boards, safety sensors, ceramic items, cement, apparel, building and repairing of ships, power and tourism, infrastructure, and logistics.
The FSRI team is facilitated to Sri Lanka by Chairman of Japan Asia Holdings Sunil Gamage.
