Sri Lanka is exploring the possibility of lifting all taxes on raw material imports soon, Chairman of Industrial Development Board (IDB), Dr. Saranga Alahapperuma told Sunday Observer Business on the sidelines of the CEMS-Global USA’s series of textile exhibitions media event in Colombo.
He said that the main reason for this is to bring down the cost of production for manufacturers. “Though most raw material imports are exempt from taxes, some taxes still exist and we have spoken to the Ministry of Finance to remove them and have received positive feedback. This would help manufacturers to cushion out some of their overheads,” he said.
Group CEO of CEMS-Global USA, S. S. Sarwa said that Sri Lanka can be easily turned to an apparel sourcing hub to service the region. He said that many international companies have indicated that they would like to source their material through Sri Lanka to the region.
Sarwa said that Sri Lanka is at a major advantage as it is not involved in geopolitics. “This is a major advantage for countries such as India and Pakistan to source their apparel material from Sri Lanka.”
Air and sea connectivity from Sri Lanka and the friendly re-export tariff is another advantage.
From February 29 to 2 March 22, the entire textile and garment industry of Sri Lanka will again converge for the Sri Lankan edition of CEMS-Global USA’s textile exhibitions: the 11th Textech Sri Lanka International Expo on Textile, Garment Technology and Machinery; the 13th Colombo International Yarn & Fabric Show featuring International Yarn, Fabric, Trims and Accessories Manufacturers and the 43rd Dye+Chem Sri Lanka International Expo showcasing dyestuff and fine and specialty chemicals will be held at the SLECC Colombo 10, from 10 a.m. to 6 p.m.
“As the textile industry evolves to meet the demands of an ever-changing world, these exhibitions provide a platform for manufacturers to showcase their cutting-edge technologies, sustainable practices, and eco-friendly materials,” Sarwa said.
He said that the event is also a great tourism attraction for Sri Lanka as over 200 foreigners will participate. “They will spend around USD 500 per day adding forex to the economy.”
The IDB, the Sri Lanka Export Development Board, Joint Apparel Association Forum and many chambers too are supporting this event.
