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| Sunday, 10 July 2005 |
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Textile manufacture will boost value addition by Gamini Warushamana The time is opportune to start textile manufacturing in Sri Lanka to boost the apparel industry and increase local value addition of our apparel products. If textiles are manufactured in the country the total value addition of the apparel exports will increase by another 10%, Treasury Secretary Dr. P.B.Jayasundera told a press conference organised by the Joint Apparel Association Federation (JAAF) to laud the government's role to get concessions under the EU GSP+ scheme. Sri Lanka can develop the apparel sector after receiving zero duty for garment exports under the EU GSP+ scheme. Dr. Jayasundera called upon the BOI to develop Biyagama and Horana Free Trade Zones (FTZ) to start textile manufacturing. In terms of value addition the apparel industry is well ahead of other main export industries. Local value addition of apparel products increased from 20-30% at the beginning of the industry and at present it is 38-40%. In tea exports the value addition is about 80% and it has remained unchanged over the decades. According to the present trend the apparel sector value addition will increase to over 50% in the near future, Dr.Jayasundera said. Sri Lanka does not have the advantages, our competitors such as China, India or Vietnam have. We are unable to achieve the advantage of the economies of scale that those countries have or raw materials such as yarn and textile they produce. However, we have our own advantages. We can position our labour force and improve product quality, Dr. Jayasundera said. The apparel industry needs a new vision and a new industrial culture has to be developed. New employment should be generated for professionals in the apparel sector and for this purpose a College of Textiles should be set up before the end of this year. It can be done in collaboration with an international institution or university, he said. Sri Lanka's apparel industry is targeting US$ 5 billion in annual exports. At present the total export value of apparel is US$ 2.7 billion and the industry accounts for around 60% of the total exports of the country. |
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