Sri Lanka - Textile Industry Overview
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Northern handloom industry to be developedSri Lanka | TQ | 10 May 2011 The traditional Industries and Small Enterprise Development Ministry has taken measures to re-function the handloom industry in Thumbalai in North. The functioning of handloom industry of the area had been affected for many years and their building was also heavily damaged due to terrorism. At this backdrop, Traditional Industries and Small Enterprise Development Minister Douglas Devananda visited and inspected the damaged buildings and gave instructions to reopen the handloom industry within three months. The re-functioning of this handloom industry will provide employment opportunity for 50 girls of the area and Minister instructed to send 10 people for training in the saree designing program to be commemorated on the 13th of this month in ... |
Earnings from garments exports grow by 121.9%Sri Lanka | TQ | 1 April 2011 Continuing the increasing trend observed since the withdrawal of the GSP+ scheme in August 2010, earnings from textile and garments exports increased by 121.9 per cent to US dollars 385 million in January 2011, depicting a 143.5 per cent increase to EU and 95.8 per cent increase to USA Central Bank stated in its 'External Sector Performance – January 2011' report. Earnings from exports in January 2011 increased by 72.4 per cent year-on-year, to US dollars 813 million led by significant increases in exports of textile and garments and rubber products. In comparison to January 2008, exports have increased by 47.3 per cent, the Central Bank said. Expenditure on imports increased by 21.3 per cent to US dollars 1,501 million in January 2011, mainly due to increases in imports of motor vehicles, electrical equipment and transport equipment. Accordingly, the trade deficit in January 2011 contracted by 10.2 per cent, year-on-year, to US dollars 688 million, the Bank further said. Exports of rubber products increased by 118.7 per cent, year-on-year, reflecting higher levels of domestic value addition, particularly in the form of solid tyres and rubber gloves. Other key categories of industrial exports such as food, beverages and tobacco, machinery and equipment and petroleum based products also performed well in January 2011, the Bank said. Earnings from agricultural exports grew by 28.9 per cent to US dollars 184 million in January 2011, recording a healthy growth in all major sub sectors mainly due to higher prices. The average export prices of tea and rubber remained high at US dollars 4.79 per kg and US dollars 4.89 per kg, respectively. Expenditure on imports of intermediate goods increased by 15.7 per cent, to US dollars 812 million in January 2011. The average import price of crude oil increased by 22.6 per cent to US dollars 95.33 per barrel in January 2011, though import volume declined. Imports of textiles increased by 55.2 per cent in January 2011, indicating a better outlook for the garment industry. Expenditure on fertilizer imports also increased in January 2011, mainly due to higher import volumes. Expenditure on imports of consumer goods increased significantly during the ... |
Nano-tech from JapanSri Lanka | TQ | 18 March 2011 Japan has sent a nano-technology expert and will provide related equipment to Sri Lanka to help the island develop applications that make exports more competitive. The aid will be given by Japan International Cooperation Agency’s (JICA) to the Sri Lanka Institute of Nanotechnology (SLINTEC) under a deal signed Wednesday, a JICA statement said. JICA’s assistance includes the dispatch of a Japanese expert who helped start MEMS/NEMS (Nano‐Electro‐Mechanical‐Systems and Micro-electromechanical Systems) research in Sri Lanka and technology transfer. "This assistance will further help the introduction of nanotechnology‐ based innovations to small and medium scale industries in Sri Lanka, expediting the penetration process of local industries into international markets," the statement said. JICA Sri Lanka’s Chief Representative Akira Shimura developed nations are infusing major funding into nanotechnology promotion with developing nations following suit. "JICA hopes nanotechnology will not only provide an opportunity to shape up technological advancement in the country but it will also lead to significant breakthroughs and solve economic, social and environmental problems,” said Shimura. The government set up the SLINTEC to concentrate on nanotechnology applications in fields such as energy, healthcare, textiles, rubber and telecommunications. Nanotechnology also known as "nanotech" is the study of manipulating matter on an atomic and molecular scale. ... |
Exports & imports record highest ever monthly valuesSri Lanka | TQ | 7 March 2011 Both exports and imports recorded the highest ever monthly values in December 2010, Central Bank stated in its 'External Sector Performance – December 2010' report. Earnings from exports increased by 34 per cent, year-on-year, to US dollars 968 million and expenditure on imports rose by 30.8 per cent to US dollars 1,429 million, the Central Bank said. The cumulative earnings from exports increased by 17.3 per cent to US dollars 8,307 million during the year 2010 recording the highest annual value ever and the cumulative expenditure on imports increased by 32.4 per cent to US dollars 13,512 million, the Bank further said. The largest contribution to the growth in exports in December was from the industrial sector, led by significant increases in exports of textiles and garments, food and beverages, and rubber products. Earnings from garment exports to EU and USA increased by 33.9 per cent and 31.4 per cent, respectively, in December 2010. Exports of food, beverages and tobacco products increased by 74.3 per cent, year-on-year, mainly due to higher earnings recorded by exports of fruits, vegetables and animal fodder. Rubber product exports consisted mainly of new pneumatic tyres and articles of apparel and clothing accessories (mainly gloves), the Bank said. However, earnings from machinery and equipment and the diamonds and jewellery exports recorded year-on-year declines in December 2010. Earnings from agricultural exports increased in December 2010, reflecting a healthy growth in all major sub sectors, mainly due to higher prices recorded by major export crops in the international market. The average export prices of tea and rubber continued to remain high at US dollars 4.56 per kg and US dollars 4.26 per kg, respectively, in December 2010. Earnings from minor agricultural exports increased by 28.8 per cent to US dollars 30 million in December, 2010 mainly due to significant increases recorded in the export volumes of cocoa, essential oils, cashew nuts and cardamoms. Expenditure on imports of intermediate goods increased in December 2010, led by higher expenditure incurred on petroleum imports. The average import price of crude oil increased by 16.5 per cent to US dollars 90.37 per barrel in December 2010. Textile imports also ... |
Pak-SL relations to new heights - SL AmbSri Lanka | TQ | 3 February 2011 The strategic partnership with Pakistan would benefit mutual advantage of both the nations, said Sri Lanka’s High Commissioner to Pakistan, Air Chief Marshall Jayalath Weerakkody in a meeting with Dr. Fehmida Mirza, Speaker of the National assembly of Pakistan. He said that Sri Lankan government wants to take Pak-Sri Lankan relationship to “new heights”, encompassing a multi-sectoral engagement. In a discussion with the Sri Lankan High Commissioner, Speaker National Assembly said that Pakistan greatly valued its close relationship with Sri Lanka and said both countries always stood by each other in turbulent times and shared commonality of views on regional issues. Pakistan acknowledges the Sri Lankan government’s efforts to defeat terrorism, and stressed the need for joint cooperation to counter this menace, quoting the Speaker APP reported. She said that Pakistan always supported the unity, territorial integrity and sovereignty of Sri Lanka and assured that despite its own economic difficulties, Pakistan would continue to contribute towards the socio-economic development of Sri Lanka. The Pakistan Speaker said that Sri Lanka being an important member of the Commonwealth Parliamentary Association should play her role to reinvigorate the CPA Asia Branch. She said that she would discuss the issue with her Sri Lankan Counterpart during her forthcoming visit to Sri Lanka. The Speaker also appreciated Sri Lanka’s timely assistance to Pakistan in the wake of the recent catastrophic floods in the country. Pakistan Speaker emphasized the need to activate the Pakistan-Sri Lanka Parliamentary Friendship Group to facilitate bilateral interaction between parliamentarians of both the countries. She informed the High Commissioner that Pakistan Institute of Parliamentary Services had been established which would initiate seminars and capacity building courses to enhance the capacity of Parliamentarians and Parliamentary staff. She said that regional countries could also benefit from the capacity building, research and I.T facilities at the Institute. Air Chief Marshall Jayalath Weerakkody apprised the Speaker about the recent visit of Sri Lankan Speaker to Pakistan. He said that the delegation was delighted to see the immense development in Pakistan and carried back greater understanding of the depth of challenges confronting Pakistan. He said that Sri Lanka was keen to initiate new joint venture projects with Pakistan in ... |
SL garment factory makes waves in fashion industry - TelegraphSri Lanka | TQ | 17 January 2011 In an article on the designs of Orsola de Castro, the founder of From Somewhere, UK’s Telegraph reports on the garment industry in Sri Lanka with reference to the Hirdaramani garment factory, Agalawatta.The factory, which was built in 2008, also showcases Sri Lanka's new drive to become the 'world's number-one ethical apparel sourcing destination', the report said. When you walk in, you don't see cramped, stiflingly hot darkness, child labour and a floor littered with rubbish - the stereotypical symbols of sweatshops. You see skylights, airy space and views of mango and banana trees. You still see rows of sewing machines, of course - a factory is a factory, after all - and some 675 machinists produce about 16,000 pieces a day. There are T-shirts, polo shirts and sweatshirts for such brands as Tesco, M&S, Decathlon, Tommy Hilfiger, Bhs. The machinists are paid slightly more than the industrial average - 8,000 rupees a month (£50); the minimum wage is 7,850 rupees a month, the Telegraph said. This factory was awarded the Leed Gold Award in 2008 (Leader in Energy and Environmental Development, a rating system developed by the US Green Building Council). Four factories in Sri Lanka have the award. 'I don't think any other apparel factories in the world have this certification,' says Suzanne Loker, a Cornell professor of textiles and apparel, and the author of a forthcoming paper, Evaluating social and environmental responsibility practices in Sri Lanka. Full article ... |
Export earnings highest in August 2010Sri Lanka | TQ | 29 October 2010 Earnings from exports increased by 7 per cent to US dollars 760 million in August, recording the highest monthly value thus far in 2010, stated the Central Bank yesterday (28) issuing 'External Sector Performance – August 2010'. Including the proceeds of the Sovereign Bond issued in September 2010, the gross official reserves, (without Asian Clearing Union (ACU) funds) increased to US dollars 6.8 billion by 25 October 2010, the Bank further said. Cumulative earnings from exports during the first eight months of 2010 increased by 11 per cent to US dollars 5,040 million compared to the corresponding period of 2009, the Bank said. It also said that the largest contribution to the growth in exports in August was from the industrial sector, led by a significant increase in exports of machinery and equipment. This comprised mainly of transport equipment such as boats and bicycles and electrical equipment such as electrical transformers, static converters, inductors and insulated cables. Earnings from exports of rubber products and petroleum products have also performed well. However, earnings from exports of food and beverages, textiles and garments, diamond and jewellery and other industrial products declined on a year-on-year basis. At US dollars 309 million, earnings from the textiles and garments sector recorded the highest earnings thus far, during the year. Earnings from food, beverages and tobacco exports have declined by 17 per cent mainly due to the lower exports of fish. Earnings from agricultural exports, which accounted for 23 per cent of total exports, increased in August 2010 led by higher earnings from exports of rubber and minor agricultural products, which continued to fetch premium prices in the international market. Rubber prices rose by 81 per cent to US dollars 3.27 per kg compared to the same period of 2009. Earnings from minor agricultural exports increased by 21 per cent mainly due to the higher prices fetched by cardamoms and cocoa products. There were also significant increases in the export volumes of tobacco, cardamoms, sesame seeds and cashew nuts. The average price of tea, however, declined marginally to US dollars 4.29 per kg in August 2010. Earnings from coconut exports also declined, ... |
UK retailers urge EU caution over Sri LankaSri Lanka | TQ | 16 September 2009 UK retailers are calling on the European Commission not to penalize Sri Lankan workers or British shoppers in a human rights row.The British Retail Consortium has warned that a threat to remove special tax-free arrangements for cheap, good-quality clothes imported from Sri Lanka could hit flourishing businesses and jobs in the country and put up customer prices, reported the UK website, retail-week.com. Sri Lanka has until Thursday to deliver to Brussels its response to charges of human rights abuses during the country’s civil war earlier this year. If human rights complaints are upheld by a Commission investigation, Sri Lanka could lose its special trade access to EU markets, the report stated. The website said that Alastair Gray of the British Retail Consortium had said that whatever the human rights concerns, any response has to be balanced. Otherwise, if the preferential access deal is withdrawn by the Commission, business in Sri Lanka could close. “Sri Lanka has many very good textile factories, but profit margins are small, and if they lose their current import arrangements, there are textiles manufacturers in Bangladesh, Vietnam, and Thailand who will be ready to compete hard. The report added that an estimated 250,000 workers employed in textile factories could lose their jobs with manufacturers forced to move or increase wholesale rates, leading to price increase of possibly 10% on popular Sri Lankan-made clothes in UK shops including Next and Marks & Spencer. The report further stated that a European Commission spokesman had said that Questions remain over the degree of effective implementation of certain UN human rights conventions in the ... |
India to provide textiles' duty free market for SAFTASri Lanka | TQ | 24 April 2008 India will provide duty reduction to the Agreement on South Asian Free Trade Area (SAFTA) member countries ranging from zero to five percent within ten years, said Minister of State for Textiles, E V K S Elangovan today. It has also been decided to provide zero duty market access for 3 million pieces of garments annually from Sri Lanka under the India-Sri Lanka Free Trade Area without any sourcing conditions and port restrictions in terms of a MoU signed between the governments of India and Sri Lanka, he said. The Agreement on South Asian Free Trade Area (SAFTA) was operationalised from July 1, ... |
Successful bond issue confirms foreign investor trust in Government’s Ten Year Vision for DevelopmenSri Lanka | TQ | 19 October 2007 “The validity of the trust that investors have placed in us is confirmed by the successful international bond issue for US $ 500 million that was closed yesterday,” said President Mahinda Rajapaksa at the opening of the Thulhiriya Textile Export Complex today (19). “When for the first time our government went to the international markets and launched a Sri Lankan bond issue for US $ 500 million, it was oversubscription by over three times the issue on offer, in the face of the many obstacles, attempts at sabotage, false and harmful publicity and attempts to frighten investors, confirms the trust and confidence the international financial markets and foreign investors have in our Ten Year Vision for development. Therefore, I honestly believe that the action of the investors in coming forward, despite some threats of not repaying debts, is a sign of the genuine expectations about the stability of this country and its future development.” The President also said: “We are dedicated to ensure the security of the country, free the people in all areas from terrorism, and build a humane and democratic society. The measures we take to restore life in the east to normalcy are also an important for necessity for the people of the north. As a government we are committed to bring the benefits of development projects such as this to the people in the north and east, too”. Here is the text of the President’s Address at Thulhiriya: Address by His Excellency President Mahinda Rajapaksa at the opening of the Thulhiriya Textile Export Complex on October 19, 2007 Friends, it is with pride that I participate in this ceremony to mark the opening of this fully modern textile export processing complex at Thulhiriya. Forty years ago, Thulhiriya achieved fame as the location of the largest textile factory in all of Asia. That factory contributed to national industrial development as well as the development of this area. That factory was privatized in the later half of 1980. From that time, through the past 20 years, not only was there a steady decline in this factory, a large number of workers too lost their employment, ... |