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Sri Lanka’s Volkswagen project temporarily halted: Minister

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.
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“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.
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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.


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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.
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In March this year, the US Federal Trade Commission sued Volkswagen for false advertising.
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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.
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