The groundbreaking for Shield Restraint Systems’ new manufacturing facility in Sri Lanka marks a significant US investment, relocating operations from China. The project at the Wathupitiwala Export Processing Zone involves an initial investment of US$ 8.5 million and is expected to create over 500 new jobs.
US Ambassador to Sri Lanka, Julie Chung, attended the ceremony, emphasizing that a supportive investment climate, including transparent governance and anti-corruption measures, is crucial to attract more manufacturers. She noted that the US is already Sri Lanka’s largest export market. This move, driven by the demand for diversified supply chains, is seen as a key step in strengthening the local economy and enhancing the country’s role in the global aerospace and defense sector.
“SHIELD’s decision to shift its facility in China to establish a manufacturing facility in Sri Lanka is a testament to the growing interest of U.S. investment in Sri Lanka,” U.S. Ambassador Julie Chung said in her remarks before laying the foundation stone to the factory. “Manufacturing moves like this one, driven by customer demand to diversify supply chains, represent a great opportunity for Sri Lanka. If the new government can strengthen the investment climate, implement anti- corruption measures, and strengthen business-friendly governance and transparency, there is potential for even more manufacturers to make similar moves.”
I was very keen about coming here. AmSafe BridPort has been here for over 20 years. They gave a glowing recommendation on the workforce in Sri Lanka. And the export/import duties here are a reason for us to come here and manufacture our products. There is a strong workforce here with good work ethics and we can hire educated people. The geographical location is not super helpful because it is further away from China. We have to come to the East Coast now and the distance is a bit more. But the benefits outweigh the cons. Our income statement will be more profitable. The Section 301 tariff policy imposed by the United States on China will make China-produced goods very high [in cost] by about 25% for particular goods. So, we are able to avoid that by manufacturing in Sri Lanka.