Friday, 22 May 2020 18:29

Sri Lanka mulls fabric processing park in East

Sri Lanka’s Joint Apparel Association (JAAF), an industry body, is working with the country’s Board of Investment to set up a fabric processing park in Eravur, Batticaloa, in the eastern part of the island to draw investors from countries like China, Rehan Lakhany, chairman of Sri Lanka Apparel Exporters Association (SLAEA).

Discussions are under way with relevant authorities to procure a 200-acre plot in Eravur for the park, Lakhany said

Chinese apparel makers, who are looking to re-locate over a trade war with the United States would be one of the target groups to be invited for setting up units, Sri Lanka imports more than half of its fabric frOm China.

Sri Lanka’s Board of Investment (BOI) says positive foreign investor response has been received for the fabric processing park to be setup in Eravur, Batticaloa to source fabrics locally for apparel exporters.

Updating on the current status of the proposed fabric park, BOI Director General (DG) Sanjaya Mohottala said yesterday that discussions with several foreign investors were held and they have positively responded to invest in the project.

He opined that Sri Lanka’s apparel exporters would benefit from the proposed fabric park as it can ensure an uninterrupted supply of raw materials as well as it would also result in reduced cost of production for Sri Lankan apparel exporters, particularly in the current context.

Initially, the proposed fabric park was expected to attract foreign investments from China and India, in the range of US US$ 50-100 million, to set up fabric mills and other finishing facilities.

Meanwhile, Mohottala also revealed that Sri Lanka’s apparel exporters so far have received US$500 million worth of export orders for the supply of PPE (personal protective equipment) and said that these orders were set to increase to US$ 1 billion in the near future.

 

(LIN)

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