Sri Lanka’s apparel industry to market proposed industrial zone in India and China
Sri Lanka’s Joint Apparel Association Forum (JAAF) is reportedly looking at marketing the proposed Eravur Industrial Zone proposed to be set up in the country’s Eastern Province to India and China.
This observation was made by JAAF President Arumugampillai Sukumaran to the Daily News Finance recently.
The comments by the JAAF comes after Sri Lanka’s Board of Investment (BOI) Director General Sanjaya Mohottala told the media that there will be an Industrial Zone in Eravur aimed at manufacturing fabric for the apparel industry.
The proposed industrial zone, which will be geared to manufacture fabric for the export market and local apparel industry, will be a huge import substitution which will bring in a tremendous foreign exchange saving to the apparel industry, Sukumaran has said.
He has noted that he was hopeful of securing the support of at least four to five Investors who would commence fabric mills which would bring in US$ 25-40 million each which would see a large quantity of foreign exchange saved.
“We would request the Government to expedite the construction of the infrastructure for the project and we would like to have the project going by early 2021,” Sukumaran has said.
OSL take:
In the new economic conditions following the Covid 19 pandemic, countries will be looking at a very competitive international market for goods and services. Country’s that are engaged in large scale manufacturing will look at expanding to areas where they could fetch a price for their goods. In such a scenario, Sri Lanka offers the best destination for large scale manufacturers to set up bases. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country makes it an ideal destination that provides viable business/investment opportunities for large scale manufacturers.
| Article Code : | VBS/AT/20200608/Z_3 |