Mahindra & Mahindra's Sri Lankan partner Ideal Group is planning to build a new vehicle assembly plant in Sri Lanka.
For setting up the new assembly plant, Indian partner Mahindra & Mahindra will provide support the Ideal Group through a 'technology transfer agreement'.
The company is expected to invest about $2m for the construction of the new assembly plant.
Ideal Group chairman Nalin Welgama was quoted by PTI as saying that the company is in discussions with Mahindra to have an assembly line in Sri Lanka.
"Technical teams from both the companies have met and discussed the possibility," Welgama said.
"We are looking at producing double-cab passenger vehicles. Sri Lanka is a small market, so we will start with 400-500 units per year capacity."
