M&M to set up IT park in Sri Lanka

1 November, 2007

Auto major Mahindra and& Mahindra is ready to set up a multi-million dollar IT park in the island nation of Sri Lanka. The move comes following a special invitation extended by the Sri Lankan government’s Enterprise Development and Investment Promotion Ministry. Mahindra & Mahindra is one of the largest companies in India with an annual turnover of $4 billion.

A report said the IT park is expected to generate 10,000 jobs in the sector. The IT park will be set up in Katunayake, near the capital city of Colombo,
by April 2008. According to a senior Sri Lankan minister, the Mahindras are also discussing the possibility of exclusively developing the Trincomalee Trade Zone for which 1,635 acres have been earmarked. Meanwhile, reports said that the Mahindras are looking at 3,000 acres in the eastern region for which the government is planning to take up the proposal again for approval.

Two teams from Mahindra & Mahindra have already held meetings with the Board of Investment officials, the report added. As per current plans, the Sri Lankan Board of Investment will take up aspects like investments and other formalities of the project and is expected to finalize it by end-October 2007. The Sri Lankan administration is said to be making arrangements to provide land for their project. Total investment of this project will be nearly $200 million over a five year period.

Infrastructure development for the Trincomalee project will have to be undertaken by the company itself as the government does not have the economic capacity to handle it. It is expected that the final agreement on the proposed project will be signed by early 2008.