Lanka, a source of quality clothing

Sri Lanka is a primary source of quality and affordable clothing for UK companies, said the British High Commissioner John Rankin at the 173rd Annual General Meeting of the Ceylon Chamber of Commerce on Tuesday.

He said that UK companies were influenced by the high quality of Sri Lankan factories - clean, modern and good working conditions."I applaud the sector's continued move towards high value, niche garments using the latest tech fabric in sports and ladies wear. It is no coincidence that many sportsmen and women competing in the London Olympics will wear specialist sportswear produced in Sri Lanka," Rankin said.

Marks and Spencer, Next, Triumph and Geroge are some of the leading UK companies which buy Sri Lankan garments. UK is Sri Lanka's largest trading partner in the EU.

Sri Lanka exported goods to the value of 804m sterling pounds to UK last year, a 14 percent increase despite the tightening economy.

EU is Sri Lanka's largest export market with goods reaching the region to the value of 2.28b Euro in 2010, a 36 percent growth in exports.

"Figures during the past five years reveal that trade with Europe has increased with balance of trade tilted in Sri Lanka's favour," the High Commissioner said.

The UK has over 100 companies operating in Sri Lanka such as HSBC, Standard Chartered Bank, Aviva, De La Rue, the London Stock Exchange and Unilever.

The EU grants Sri Lankan exporters non-reciprocal preferential access to its markets through the GSP concession, a benefit which many companies take advantage of. Sri Lanka lost the GSP Plus concession in 2010 due to non compliance of EU regulations.

Rankins referred to the annual report of the Ministry of Finance which recognised the challenges of Sri Lanka's trade deficit despite the impressive export growth of 22 percent.

The report identifies opportunities for growth in emerging markets. There are prospects for high exports in South Asia for Sri Lankan tea, rubber, gem and jewellery.

"UK is a great place to do business and visit. I encourage Sri Lankan companies to do business in the UK," Rankin said. Under the Organisation for Economic Co-operation and Development (OECD) rankings the UK has the least barriers to entrepreneurship in the world and it is one of the most open countries for trade and investment.

It takes only 13 days to set up a business in the UK with a stable and transparent political environment. The corporate tax rate has been cut to the lowest and it will be cut further over the next two years making it the lowest in G7 and G20 countries.

"The UK economy faces many challenges. The Eurozone crisis is not only bad for economies of the region but also for UK and other countries for whom Europe is a leading trading partner", the High Commissioner said.

He said that the US economy which is the world's largest should grow and steps taken to cut spending and increase tax should not lead to the country into recession.

"Countries should engage in international negotiations on global economic issues. A conducive climate for businesses to develop should be created in Sri Lanka.

Overseas investors want to know the best opportunities in Sri Lanka with clear and efficient approval processes," Rankin said. Political reconciliation is vital for economic development such as creating jobs and opportunities for those who have been affected by terrorism," he said.