Press briefing of Cabinet Decision taken on 2011-04-06

Flagship Investment in Steel Industry

- it has been observed that the total demand for basic steel products is expected to increase from 400,000 MT. in 2009 to 750,000 MT. in 2015. The domestic steel industry presently consists of 8 Board of Investment (BOI) registered companies with a maximum production capacity of 300,000 MT. per year. The proposed strategy is to increase the domestic value addition in steel products from US $45 million in 2009 to US $200 million in 2015 and thereby achieve 2/3rd self sufficiency in 2015. The Ceylon Steel Corporation of Sri Lanka which is the largest steelmaker in the country is to invest US $80 million for the expansion of the industry. This will expand annual production from 80,000 MT. in 2009 to 250,000 MT by 2014 and due to this increase the nett foreign exchange savings will be approximately US $125 million per year by 2015. The proposal made by Hon. Basil Rajapaksa, Minister of Economic Development, to proceed with the project proposal, was approved by the Cabinet.