Apparel sector in Sri Lanka starts investing in their companies to boost the export production capacity
The MAS Group in Sri Lanka and several other apparel firms in the country are reportedly investing in their companies in order to boost the export production capacity.
The investments are said to be made amidst an overall increase in industrial investments according to new approvals granted.
Sri Lanka’s Minister of International Trade and Investment, Malik Samarawickrema has told parliament that US$ 1.34 billion of investments in infrastructure, utilities, hotels and industries has been approved up to April 2014.
According to reports, MAS Active in Sri Lanka, a sportsware group is to invest US$ 21 million to boost capacity.
Other companies that are expanding include D 2 Clothing (Pvt) Ltd, Original Apparel (Pvt) Ltd and Hirdramani International Exports, reports state.
Reports further state that investments totaling US$ 28 million had been approved for the apparels sector up to April.
Sri Lanka’s exports sector received a boost after the European Union (EU) restored the GSP+ trade concessions to the country.
According to statistics, the country’s exports grew 10.2 percent to US$ 11.3 billion in 2017, with industrial exports up 7.6 percent to US$ 8.64 billion.
OSL take:
The decision by apparel companies in Sri Lanka to invest in boosting export production capacity indicates the anticipated growth in the country’s apparel exports sector. The re-assigning of trade concessions to Sri Lanka by the US and EU has provided an impetus to the country’s apparel sector. This is an encouraging sign for foreign investors/businesses to set up operations based in Colombo for apparel exports or even form partnerships with apparel companies engaged in garment exports in the country.
| Article Code : | VBS/AT/30052018/Z_1 |