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By Channa Kasturisinghe

Locally assembled vehicles using imported second hand parts will be introduced to the market in two months providing an opportunity for Sri Lankans to buy their own vehicles at 40 percent less than the market price, the Managing Director of Vehicle Lanka (Pvt.)Ltd, Harsha P de Silva told the Daily News yesterday.

He said the project with Japanese and Singaporean collaboration has been launched with an initial investment of Rs.500 million over the first three years and the manufacturing plant has already been set up at Minuwangoda.

However, the Ceylon Motor Traders' Association (CMTA) has expressed its opposition over the project claiming that it would have a negative impact on the country's automobile trade and would be a threat to the safety of the passengers and the environment.

As a result of the opposition the Investor Facilitation Committee (IFC) had decided to recommend the cancellation of the Board of Investment (BOI) approval granted for this project. The BOI in a recent statement said it suspended the import/export facilities to such projects pending a decision by the Attorney General.

However, de Silva said that the project proposal was duly evaluated and approved by the BOI after due consideration and in terms of Section 17 (1) of the BOI of Sri Lanka Law, No 4 of 1978.

"The BOI has not informed me about any decision to cancel the agreement on this project. However, it is wrong on the part of the BOI to cancel an already approved agreement when there is no evidence that the other party has not violated the agreement.

Since the signing of the agreement we have invested heavily on the project as there was no opposition initially. If the BOI can act in such a manner based on the opinion of various groups with vested interests it would reflect badly on the country," de Silva said.

He said he had already written to the BOI on the matter and would not hesitate to take legal action if the BOI decided to cancel the project. Meanwhile, the CMTA Chairman Ajith Algama said it is considering legal action against the project through its principals overseas.

However, de Silva said before investing on the project he had discussed with leading vehicle manufacturers in Japan and they were not against it.

"There is no restriction on using second hand parts to assemble vehicles which is already happening in the country in various other forms.

Where Vehicles Lanka (Pvt) Ltd. is concerned the vehicles produced are specifically checked, using appropriate machinery to ensure roadworthiness of the vehicle.

We will be using parts of a vehicle of a particular brand and it would be marketed under the same brand name. He said that there is no guarantee that vehicles that are imported as second hand vehicles have satisfied the requirements for roadworthiness since no tests are carried out for the purpose.

"Our vehicles will be properly tested and we guarantee the body parts for two years and the body for ten years," de Silva said.

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