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Withdrawal of GSP+ not deterring investors

19th Feb 2010

Just days after the European Union decided to withdraw preferential trade benefits or GSP+ as it is called; the Board of Investment (BoI) has given approval to investors to set up garment factories in the island country.

Boi has given the go-ahead to a Hong Kong based company; Interfashion Limited, which will invest Rs 35 million to manufacture high-value ladies formal wear for Marks & Spencer and Tesco.

The production capacity of the plant will be 60,000 pieces per month and the factory will be located at Nuwara Eliya in the central hills. It will initially provide employment to around 250 workers which is expected to be scaled up to 1,200.

Boi has also approved investment of Trendywear Adhikarigama which will invest Rs 315 million to set up a plant to produce and export high fashion ladies garments, with a production capacity of 120,000 pieces a month.

The company will provide initial employment to around 1,000 people and at full capacity will be employing more than 1,500 workers. Trendywear has four other garment manufacturing units employing 3,000 people.

Fibre2fashion News Desk - India