By: Staff Writer
December 21, Colombo (LNW): Shield Restraint Systems Ltd. has formally commenced operations at its newly built advanced manufacturing facility at the Export Processing Zone (EPZ) in Wathupitiwala, Nittambuwa, marking a notable step forward in Sri Lanka’s push to attract high-value foreign direct investment into export-oriented manufacturing.
The inauguration was attended by senior executives from the United States, including TransDigm Inc. Executive Vice President Kevin McHenry and Shield Restraint Systems President Dennis Pursel, underlining the strategic importance of the Sri Lankan facility within the company’s global supply chain. Sri Lankan officials led by Board of Investment (BOI) Chairman Arjuna Herath and Director General Renuka Weerakone were also present, alongside representatives from the US Department of Commerce and the US Embassy, highlighting growing bilateral economic cooperation.
Shield’s Sri Lankan operation will manufacture specialised safety restraint products used in child safety seats, commercial vehicles, heavy machinery, agricultural equipment, and amusement park ride products that demand high precision and strict compliance with international safety standards. The investment introduces a relatively new manufacturing segment to Sri Lanka, moving beyond traditional apparel and rubber-based exports into safety-critical industrial components.
The project represents an initial investment of USD 8.5 million and includes a modern 100,000 square-foot facility. Although operations are currently running at around 10% capacity, full-scale production is expected to generate approximately 500 direct jobs and annual export revenues of nearly USD 50 million. Beyond employment, the facility is expected to contribute meaningfully to tax revenues and foreign exchange inflows at a time when Sri Lanka remains focused on export-led recovery.
Company officials cited Sri Lanka’s strategic location, access to global shipping routes, and a skilled, adaptable workforce as decisive factors in selecting the country. The presence of sister company AmSafe Bridport Ltd. in Sri Lanka also provided confidence regarding local manufacturing capabilities and operational resilience.
However, the project also highlights systemic challenges. Senior management stressed the need for improved administrative efficiency, transparent regulatory processes, and faster approvals to sustain investor confidence. Delays in policy reforms and the absence of a fully functional “one-stop” investment facilitation mechanism remain concerns for new entrants.
Despite these constraints, Shield has signalled long-term intent, with discussions underway for additional investments exceeding USD 17 million. If supported by consistent policy execution, the project could position Sri Lanka as a competitive South Asian hub for specialised industrial manufacturing rather than low-margin assembly work.
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