Speaking at the 2021 Sri Lanka Economic Summit hosted by the Ceylon Chamber of Commerce (CCC), Hirdaramani said only about half of Sri Lankan clothing exports are eligible for the Generalized Preferential Scheme Plus (GSP +) tax breaks due to the rules of origin criteria, which concerns whether the clothing is sufficiently originating in the country requesting the concessions.
âThe fastest growing segment is lounge and activewear which requires a lot of materials traditionally made in the Far East, especially China and Taiwan. For this reason, the initiative of government and our industry to encourage more investment in the local fabric supply chain is crucial to our strategy, âhe said.
Sri Lanka’s garment sector targets exports worth $ 8 billion by 2025 of the $ 5.5 billion it earned in 2019 by increasing investment in supply chains local, according to industry experts. Such investments will improve lead times and improve the added value of the industry, which is currently around 55%, according to Hirdaramani Group Director Aroon Hirdaramani.
âIt has been proposed to create a textile zone in Eravur, which will be an environmentally friendly textile zone, with water recycling and sustainable energy use. We are working very hard to attract some key fabric players to invest in the area and also invest in other fabric factories, âhe said, quoted by Sri Lankan media.
For Sri Lanka to gain substantial market share as such, it will be essential to secure FDI flows from major commodity players from different parts of the world, he said.
âThere has to be consistency in policy and continued incentives given to these suppliers and many of us would like to involve them,â Hirdaramani added.
Fibre2Fashion Information Office (DS)