Suzuki Swift      India’s largest car maker Maruti Suzuki is expected to take a final decision on setting up an assembly plant in Sri Lanka, before end of the current financial year, a media report said.

If done, this would be the first such overseas facility of the Indian car maker.

“Sri Lanka keeps changing its tax rates. When rates were low, it was a big market for us. We were exporting 17,000-18,000 vehicles to the country every year. In 2012, when tax laws were changes, duties became very high and sales dropped dramatically. We are studying whether it would be viable to set up assembly operations there. A final decision would be taken by the end of the fiscal,” R C Bhargava, chairman, MSIL has told the Indian media.

Maruti Suzuki has sold around 15,000 vehicles in Sri Lanka in 2011-12.

Maruti Suzuki sales to Sri Lanka has dropped in the recent times, as the country imposed heavy duties on automobile imports in a bid to reduce the import bill to manage fiscal balance.

Sri Lanka is the largest export market for Indian automobiles. In 2011-12, out of India’s $6 billion worth of auto exports, the Island has accounted for $800 million.

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