Sri Lankan company signs US$ 4 million agreement to expand to Trincomalee
Sri Lanka’s Board of Investment (BOI) has recently entered into a supplementary agreement with Jay Jay Mills Lanka to lay the foundation to an initial investment of US$ 4 million to set up operations in the Kappalthurai Industrial Zone in Trincomalee in the country’s Eastern Province.
The agreement was signed by BOI Chairman Sanjaya Mohottala and Jay Jay Mills Lanka Managing Director B. Srikumar.
The move is expected to boost economic activity and generate employment opportunities for local communities in Sri Lanka’s Eastern Province.
Jay Jay Lanka is a subsidiary of Jay Jay Mills India and is the fifth expansion project of its kind for the Company that was established in 2000.
Located across manufacturing facilities in the Seethawaka Export Processing Zone, Matara Kekanadurra, Moneragala and Mannar, this entrance into Trincomalee is expected to enhance its capacity to fulfill requirements of its world-renowned customers such as Tesco, M&S, Mothercare, Gerber, Target, Garan and Walmart.
In addition to its presence in Sri Lanka, Jay Jay also has operations located in Bangladesh, India and Ethiopia.
Mohottala has been quoted as saying, “We are deeply grateful and encouraged by the enterprising strides taken by Jay Jay Mills Lanka to establish operations in territories that require a much-needed infusion of economic activity and technical skills enhancement. Sri Lanka has no shortage of a rich reserve of intelligent talent, which can be tapped across the country.
“We are happy therefore to see companies with an international footprint introducing themselves to these communities and investing in their future through gainful employment that will ultimately support the improvement of rural infrastructure and livelihoods.”
OSL take:
Sri Lanka’s manufacturing and exports sectors have shown a positive growth even amidst pandemic challenges. The country’s apparel sector has shown an impressive growth momentum and the authorities are working towards further strengthening the apparel industry. The many trade agreements and concessions enjoyed by the country have also helped boost the country’s exports, especially the apparel industry. Sri Lanka’s apparel industry therefore poses many business/investment opportunities. Also, with the government of Sri Lanka launching the setting up of a dedicated fabric manufacturing park to locally source raw materials for the apparel industry, there are many growing opportunities in establishing infrastructure facilities in Sri Lanka’s apparel industry.
| Article Code : | VBS/AT/10092021/Z_2 |