Business Opportunities in Sri Lanka

Sri Lanka's Competitive Advantages in the Garment Sector

• A well established, export oriented manufacturing industry.
• A ready supply of raw material and an expanding resource base.
• A literate, trainable workforce. The work force is highly productive, has good hand to eye coordination, proven precision and dexterity.
• Sri Lanka's geographical location & infrastructure advantages.
• Compliance with the best international labour and environmental laws and practices.
• Prevailing Electronics Visa Information System (ELVIS).
• Market and investor friendly policies of the government.
• An array of attractive incentives extended for the textile/apparel industry.
• Unlimited quota free access to the EU markets.
• Preferential access to Indian market including duty-free concessions provided by the
  Free Trade Agreement (FTA) between Sri Lanka and India.
  
  

  Potential Areas for Investment

• Textiles (including dyeing) - both woven and knitted
• High fashion garments
• Accessories - such as buttons, zippers, embroidery, labels, yarn, thread, elastic
• High Fashion/Buying Offices
  

  The Textile, Garment and Fashion Accessories Industry In Sri Lanka

  The textile and apparel sector is one of the most significant and dynamic contributors to Sri Lanka's overall economy. Sri Lanka's strength in textile and apparel manufacturing lies in its ability to produce high quality goods at competitive prices, combined with an industry structure which is flexible and uniquely capable in servicing leading international brands.
  
  a) A well established, export-oriented manufacturing industry
  Sri Lanka's apparel manufacturing sector is highly developed and has evolved as an export oriented industry for over two decades. Currently around 800 companies in Sri Lanka produce a wide range of products including branded names -most of them catering to the international market. Today clothing labelled "Made in Sri Lanka" can be found in major department stores in the USA, UK, Germany and Australia.
  
  b) A ready supply of raw material and an expanding resource base
  Both foreign and local companies have set up textile mills/finishing plants and many accessory manufacturing industries to serve the increasing needs of the industry. Products manufactured include buttons, zippers, hangers, yarn, thread, fabrics, interlinings, packaging, elastic, padding, quilting, etc. The services offered range from, dyeing and finishing, screen printing, embroidery, training, washing, etc. Most existing factories have been automated and upgraded. Computerization of areas such as inventory/stock control has also assisted the rapid expansion of the industry.
  
  c) Training and human resource development
  Sri Lanka's human resource development ranks with the leading industrialised nations that have made significant headway in this area. The World Bank has ranked Sri Lanka far ahead of other SAARC and ASEAN counterparts in human resources.

  The textile and apparel industry provides employment to approximately 1/3 of the labour force involved in the manufacturing sector. To further develop human resource capital in the textile/apparel industry, both the government and the private sector have set up textile training and clothing institutes in Sri Lanka.

  The Sri Lankan apparel industry is also recognised worldwide for adhering to international best practices in labour standards.
  
  d) ELVIS System
  The Sri Lankan apparel industry entered a new phase with the introduction of the Electronic Visa Information System (ELVIS). ELVIS was developed by the US government in 1991 in an effort to eliminate excess paper processing and minimise the risk of forgeries, counterfeiting and errors. With the introduction of this modern electronic system the Sri Lankan authorities, US Customs and all exporters are able to maintain accurate records.
  
  e) Unlimited quota free concessions to the EU Markets
  The SAARC region has been officially recognized by the European Union as a regional group for the purpose of granting quota free concessions under the General System of Preferences (GSP) scheme.

  An export from any SAARC country is eligible for preferential duty in the EU under the " Regional Cumulation of Origin" This enables Sri Lanka's fabric and apparel manufacturers to be price competitive in the EU market by sourcing cheaper raw materials from countries throughout the SAARC region.
  
  Indicative Labour Costs

  Incentives