Sri Lanka - a base for footwear assembly

by Sapumali GALAGODA

"Sri Lanka is working towards the early conclusion of the Comprehensive Economic Partnership Agreement (CEPA) between India and Sri Lanka and the cabinet has appointed an inter governmental committee to be convened by the Director General of Commerce", said Minister of Industry and Commerce Rishard Bathiudeen.

Indian High Commissioner in Sri Lanka Ashok K. Kantha speaking to a seller. Pic: Chinthaka Kumarasinghe

He said that Indian footwear industrialists can readily use Sri Lanka as a base for profitable footwear assembly and use Sri Lanka's developing logistic infrastructure for re-shipping,"

The Minister was the chief guest at the opening of the Buyer and Seller Meet (BSM) and Trade Exhibition of components, materials and leather for footwear, goods and upholstery held for the fourth consecutive year in Sri Lanka on March 2nd and 3rd at Galle Face Hotel, Colombo.

The BSM was organised by the Council for Leather Exports, India, the Indian Footwear Components Manufacturers Association (IFCOMA) with the High Commission of India in Sri Lanka.

"Twenty major footwear component suppliers offering a range of opportunities especially for the SME's are here in Sri Lanka and it is a very cost effective way to build mutual trade relationships between India and Sri Lanka" said the Indian High Commissioner in Sri Lanka Ashok K. Kantha.

At the 2010 BSM held in Colombo, US $ 19,500 worth of confirmed orders were received.

The Sri Lanka footwear industry imports the bulk of its leather requirements directly from Chennai. The industry is expecting a healthy growth after the government granted tax concessions last year. India is the number two footwear producer in the world and is aiming to double its current leather exports to $ 7 billion by 2014.

Sri Lanka is using Indian resources to train its footwear designing and production skills.