Australian bus manufacturer Custom Denning is planning an investment in an electric bus manufacturing facility in Sri Lanka.

The proposed facility would manufacture electric buses for the domestic public transport sector and for regional and international export markets. The investment is expected to be the largest overseas investment in electric bus manufacturing in Sri Lanka.

Sri Lanka's transport sector continues to face pressure from rising diesel prices. Compared with the low-floor diesel buses currently operating on local roads, Custom Denning estimates that its electric buses could deliver savings of approximately 50% in total lifecycle costs over a 15-year period. This could reduce long-term transport costs and create opportunities to export Sri Lankan-made vehicles to regional and international markets.

The proposed programme focuses on local chassis and body manufacturing, technology transfer and the development of Sri Lankan component suppliers to meet international automotive standards. The factory is intended to establish large-scale manufacturing capabilities in Sri Lanka, rather than being limited to the assembly of imported kits or the importation of completed buses. The company is also proposing to establish a local battery assembly industry in collaboration with a European technology partner. The proposed arrangement would involve the introduction of battery technology, the development of local technical expertise and the establishment of a supporting industry in Sri Lanka.

Custom Denning has more than 50 years of operating experience and manufactures electric buses that operate on Australian roads. The company is also expanding into regional and international markets. Building on its existing local engineering office, the proposed manufacturing plant in Sri Lanka is expected to generate direct employment for local engineers, technicians and tradespeople, as well as indirect employment across component suppliers and supporting industries. The facility would also provide Sri Lankan professionals and technicians with experience of international projects and standards, while contributing to the development of local technical capabilities, engineering knowledge and advanced manufacturing skills.

The proposed programme could also reduce foreign currency expenditure on imported diesel, support energy sovereignty and contribute to the development of an economy that is less exposed to external shocks. Custom Denning intends to combine electric bus technology, local chassis and body manufacturing, battery assembly, technology transfer, workforce development and export capabilities in a single manufacturing operation. The company states that this combination of activities is not currently offered by any single supplier in Sri Lanka.

The proposed investment could support the modernisation of Sri Lanka's public transport system while establishing domestic manufacturing and export capabilities for zero-emission buses serving regional and international markets.