Sri Lanka’s proposed fabric park to manufacture US$ 500 million worth raw material annually
The Morning: The Board of Investment (BOI) is setting up a Textile Park in Punnakuda, Batticaloa with the intention of manufacturing textile raw materials within Sri Lanka, thereby saving US$ 500 million in import expenditure.
The park, which is on a 255-acre land, is equipped with all facilities and the potential to establish eight to 10 large-scale factory complexes. Furthermore, the Textile Park can be named the largest development project being undertaken in the Eastern Province.
In addition, the Government is to spend a sum of Rs. 5.5 billion on the development of infrastructure facilities in the project, which will eventually boost infrastructure facilities in the area.
BOI Chairman Raja Edirisuriya and Director General Renuka M. Weerakone made an inspection tour alongside a group of investors who are geared to embark on new projects in the Fabric Park.
BOI Chairman Edirisuriya further expressed positive sentiments and said: “We are pleased to launch the first phase of the park, which will provide an opportunity to add raw materials to the local apparel industry. Accordingly, this will not only prevent the US$ 500 million from flowing out of the country but also provide an opportunity to manufacture apparel made entirely from local materials for the global market.
“Moreover, expectations that it will show the results of the economic and social growth that can be seen in investment zones under the BOI such as Katunayake, Biyagama, Koggala and Seethawaka,” the Chairman emphasised.
Meanwhile, speaking on the occasion, BOI Director General Renuka M. Weerakone said: “The Textile Park has been constructed following a thorough and extensive study done by BOI officials where they have recommended that it be converted into an investment zone.
“The BOI has also taken initiative in obtaining necessary approvals from relevant line ministries and institutions. We as the BOI aspire to establish the Textile Park in a more environmentally friendly manner,” she stressed.
Meanwhile, BOI Executive Director (Zones) M.K.D. Lawrance expressing positive sentiments said “the steps have been taken to provide facilities needed to set up factories in parallel to developing infrastructure facilities in the region. The construction work on 40% of access roads have been completed and a daily water capacity of 1,500-2,000 cubic metres has been supplied to fulfil the water requirements of setting up factories. Electricity has also been supplied while the basic constructions of the wastewater treatment plant have also been completed.”
OSL take:
Sri Lanka’s apparel industry is one of the key foreign exchange revenue generators of the country. Supported by the many trade agreements and concessions enjoyed by the country, Sri Lanka’s apparel industry continues to expand creating new business/investment opportunities in the industry. The proposed fabric park in the Eastern Province is one such example to the expanding business/investment opportunities in the local apparel industry. Apart from setting up supplementary infrastructure facilities as well as facilities to manufacture the required raw materials, once such mechanisms are put in place, Sri Lanka’s apparel industry could become more competitive in the international market. Business/investment opportunities in Sri Lanka’s apparel industry therefore presents lucrative opportunities to foreign businesses/investors.
| Article Code : | VBS/AT/06052022/Z_3 |