Apparel industry gears to hit US$ 5 b target by 2015
Sri Lanka's apparel industry will be launching an industry growth
drive in 2011 and an awareness campaign to increase apparel export
incomes to US$ 5 billion in 2015.
"Sri Lanka's apparel industry continues to manufacture world renowned
quality apparels for global brands.
It has always adhered to ethical practices and environment standards.
The industry has huge potential to become a US$ 5 billion industry.
Towards this, further facilities will be arranged to promote entrepot
trade involving imports, processing and re-exports as well as
transshipment business in apparel clothing.
Incentives have been given to promote textile, apparel and leather
product related high value added activities.
Machinery and equipment to manufacture textile, leather, footwear and
bags will be exempted from import duties and VAT.
The Government also plans to attract leading buyers to establish
their headquarters in Sri Lanka for management, finance, supply chain
and billing operations.
I also propose to exempt foreign exchange earnings from such
activities from income taxes.
In order to promote these activities, the exchange control
requirements and Custom procedures will be simplified," said President
Mahinda Rajapaksa in the budget speech in November 2010.
In addition, the government's latest development policy framework,
based on the Mahinda Chinthana, from the Department of National Planning
of the Ministry of Finance and Planning, titled 'Sri Lanka, the Emerging
Wonder of Asia,' has also earmarked the apparel industry for growth.
The national development policy framework notes that the apparel and
textile industry is a significant contributor to the Sri Lankan economy
with the highest net foreign exchange earnings.
In 2009, export incomes from the sector accounted for 46 percent of
total export incomes of the country at US$ 3.262 billion.
The policy framework notes that local apparel manufacturers must
develop new products to overcome increasing competition in international
markets and to remain competitive.
"Three textile processing zones will be established in order to
enhance the value addition in apparel exports.
Special emphasis will be paid to product diversification and to
produce raw fabrics, other raw materials and accessories to feed the
apparel industry," says the Sri Lanka, the Emerging Wonder of Asia
policy framework.
The industry has already positioned itself as an ethical manufacturer
of apparel among its local and international stakeholders.
"As pioneers in ethical business practices, passionate advocates of
Garments without Guilt, and home to the world's first green factories,
it is obvious how committed we are towards our social and ecological
responsibilities," said the Joint Apparel Association Forum [JAAF]
spokesperson.
The JAAF notes that Sri Lanka has always been among the most
progressive in the world when it comes to ecological awareness and
responsibility.
With numerous programs that include marine conservation and
preservation, Sri Lanka has always stepped up for the environment.
The Sri Lankan apparel industry also offers three other major
advantages to international buyers.
The first being the speed of delivery, based on Sri Lanka's unique
geographical location, the industry's vertical integration and
interconnectivity within the country.
"From manufacturing to logistics, Sri Lanka Apparel has learned to
cut timelines, offering our clients the benefit of faster turnaround,"
said the JAAF.
The second strong point of the industry is its ability to supply
world class products through the latest technologies and the capacity to
innovate.
"With a strong focus on building up design capabilities, the latest
technologies and the capacity to innovate, Sri Lanka Apparel has been
offering clients world-class products for over four decades," said the
JAAF.
The third advantage offered by the apparel industry is Sri Lanka's
favourable business policies and investor climate. "Sri Lanka is ranked
the most liberalised economy in South Asia.
Investors are provided with preferential tax rates, constitutional
guarantees of investment agreements, exemption from exchange control,
and 100 percent repatriation of profits.
Total foreign ownership is welcome in almost all areas of the economy
with only a few areas limited or restricted to foreigners," noted the
JAAF.
The JAAF states that the apparel industry growth drive, supported by
its awareness building campaign, will directly contribute towards
increasing apparel export incomes to US$ 5 billion by 2015.
|