Aug 22, Colombo: An Australian company has agreed to invest US$ 10.5 million to set up a manufacturing plant in Sri Lanka to produce oats-based foods.
Sri Lanka's investment promotion agency, Board of Investment has signed an agreement with Aussee Oat Milling Pvt Ltd, to manufacture oats based products such as rolled/flaked oats, flavored oats, oats muesli, oats flour, oats bars and oats cookies for export.
The company plans to invest US$ 10.5 million to set up a manufacturing plant in the Export Processing Zone in Mirigama.
Aussee Oat Milling Pvt Ltd is a Joint Venture between Future Consumer Enterprise Ltd and SVA India Ltd, both public listed entities in India. The company is looking to set up the first state of the art Oat Mill in South East Asia to process oats from the raw form right up to the finished product.
Oats have a good demand in developed countries and the demand is growing in the South East Asian region and the company aims to be able to supply a superior quality product to all the surrounding countries. Sri Lanka being a logistical hub, they will be able to supply at good prices and a constant supply, the BOI said.