Cabinet nod for Trinco steel factory EIA

• Cabinet approval given to conduct EIA for $ 1 b steel factory
• Horana tyre factory to start production by year end
• Hambantota cement factory likely to start production by August 2020

By Ruwandi Gamage

Cabinet approval has been given to carry out an Environmental Impact Assessment (EIA) for the $ 1 billion project to build a steel factory near the Trincomalee Port, Development Strategies and International Trade Deputy Minister Nalin Bandara said yesterday 

Speaking to media at Temple Trees, Bandara said the steel factory would have state-of-the-art technology and would be the first of its kind in Sri Lanka. 

He also said the project would create 6,000 jobs for locals. Bandara also said that this factory would be helpful towards the Trinco Port becoming more operational.

“The responsibility to handle the EIA has been given to the Board of Investment (BOI). We will adhere to the EIA when continuing with the project,” he stated.

The Deputy Minister stated that the tyre factory project in Horana had almost completed construction and that production of tyres would begin towards the end of this year. He said that the confidence and trust shown by the investors in this project to remain with Sri Lanka even after the Easter attacks was positive for the overall economy.

Bandara added that the cement factory investment project in Hambantota was also underway and they were hoping construction would be completed as planned. The Deputy Minister was optimistic that the factory would be able to start production by August 2020. The discussions held in May with Oman investors on the $ 3.8 billion refinery venture were also described as successful by him.

“The oil refinery project is also continuing without any interruption from the recent events in the country and none of the investors have shown any desire to back out. The main investor in this project is India’s Accord Group and it has already started its part of the process. Oman is mainly focused on oil refining as well as the creation of factories that manufacture by-products, such as fertiliser and poly-ethylene. Discussions with them regarding this are successfully continuing,” he added.