The cabinet of Ministers has approved tax relief proposed for the project to manufacture semi – steel radial tires and total steel radial tires for the export market in Hambantota.

The Board of Investment has approved a proposal submitted by Shandong Haohua Tire Co. Limited of China to manufacture semi – steel radial tires and total steel radial tires for the export market within the premises of Hambantota International Harbour.

Shandong Haohua Tire Co. Limited of China has submitted a proposal to the BOI with an investment of US$ 300 million for the project.
The BOI has given its consent for the implementation of the project as a strategy development project under the Strategy Development Act (Amended) No. 14 of 2008.

Accordingly, the Cabinet of Ministers has approved the proposal forwarded by Prime Minister Mahinda Rajapaksa as the Minister of Finance for awarding relevant tax relief as per the provisions furnished by the strategy development act.

The tax reliefs will be granted subject to inauguration of the project within a period of 36 months and export of at least 80% of the total production.