Sri Lanka Plans To Set Up Fabric Processing Zone Targeting Global Investors

December 06, 2019

Sri Lanka's apparel industry is planning to set up a fabric processing park in Eravur, Batticaloa in the east of the island, to draw investors from countries like China in a bid to cut lead times and reduce input costs, local media quoted a leading official as saying on Thursday.

Sri Lanka's Joint Apparel Association (JAAF) was working with the Board of Investment on setting up the industrial zone, Chairman of Sri Lanka Apparel Exporters Association Rehan Lakhany told the local EconomyNext.

"We are talking to the relevant authorities to allocate a land of about 200 acres in Eravur that we have identified suitable to set up this zone," Lakhany said. "Foreign textile manufacturers will be invited to set up factories within the zone," he added.

Chinese apparel makers, who are looking to re-locate would be one of the target groups. The island imports more than 50 percent of its fabric from China along with other countries like India.

The industrial zone will have centralized facilities such as water treatment plant to re-cycle water which will reduce set up costs for prospective investors, Lakhany said.

Sri Lanka apparel exports grew 6.5 percent year-on-year this October and is expected to end at a 7-percent growth rate by the end of this year. (XINHUA)

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