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Seagulf Shipyard to invest US$ 40 mn on three projects

February 9th, 2016
Seagulf Shipyard to invest US$ 40 mn on three projects

Seagulf Shipyard (Pvt) Ltd will invest over US$ 40 million to build shipping yards and for maritime related activities for 2016. These investments will be made in Trincomalee, Galle and at their yard in Modera.

Seagulf Shipyard Managing Director Sarath Obeysekera said that they have already invested US$ 3 million to build a ship building facility in Modera. “We offer about 100 employment opportunities and will infuse a further US$ 7 million with a Malaysian partner to build ships.” A further 400 will gain employment from the project. The company has also received orders from the Maldives and Indian companies to build ships and small tug boats for them.

Obeysekera said that they have also signed up again with their Malaysian partner to build a comprehensive ship building and repair facility in the Galle Harbour.

Galle is already a port of call for yachts traversing the Indian Ocean. The investment will be around US$ 25 million. Seagulf Shipyard will focus on repairing and maintaining, yachts, boats and tourist related boats.

“The project will also create employment for marine engineers and maintenance in ship repair and shipbuilding worldwide.” The repair facility in Galle will also attract a large number of vessels from the Maldives, creating many business opportunities for Sri Lanka. About 1,200 people are expected to be directly employed by the project.

Obeysekera said that their third project will be in the Trincomalee harbour mainly to manufacture ship lifting devices.

He however said that they are facing many issues with double taxation and unfair demurrage charges. “We also want the entrance of the Galle Harbour cleared to speed up our project there.”

The company was also present at the recently concluded Doing Business event organised by the Finance Ministry. The company brought up the issue where they paid Rs. 1.5 million at demurrage to the Colombo International Container Terminals (CICT) while importing steel plates to manufacture ships. “This not our fault as it was the Inland Revenue Department that delayed the documentation process.”

He said Finance Minister Ravi Karunananyake and the Inland Revenue Department are very cooperative in this regard and they have promised to discuss with CICT in this regard again.