Two ready-made garment plants to be set up - USAID

21 Apr '10

3 min read

The U.S. Agency for International Development has announced a new business alliance program with Sri Lanka's private sector. Partnering with five local businesses, the USAID Public-Private Partnerships for Northern and Eastern Sri Lanka (PPP) Program is expected to create the equivalent of 5,000 full-time jobs in the former conflict zones.

These five alliances are all with indigenous Sri Lankan private companies. USAID's investment of about Rs.600 million will generate an additional Rs.1,400 million investment from the private sector for a total of about Rs.2 billion. The sectors include Aquaculture, Apparel Manufacturing, Logistics, and Horticulture.

Apparel Alliance
By establishing a ready-made garment plant in Omanthai, near Vavuniya in the Northern Province, an alliance between USAID and a leading garment manufacturing and export company will create 1,000 jobs for the internally displaced people, including young widows, in and around the conflict-affected areas of the Northern Province.

Aquaculture Alliance
An alliance between USAID and a Sri Lankan aquaculture company will bring about expanded production in the Eastern and Northern provinces with the dual goal of increasing fish-based income and enhancing the aquaculture supply chain of high value seafood products. By the end of the three-year project, 1,300 smallholder farmers will increase their net income by 300%.

Connecting Producers to Buyers
A leading logistics company will invest in logistics activities to help farming communities in the conflict-affected areas. Through this alliance, farmers in Northern and Eastern provinces will have an opportunity to increase both their production and income. At least 1,500 farmers and fishermen will benefit from this alliance. Cold storage units will be built in Jaffna, Ampara, and Batticaloa.

Northern Horticulture Alliance
An alliance between USAID and a Sri Lankan horticulture company will improve the productivity and profitability of fruit and vegetable farming in Jaffna, Vavuniya, and Mannar by minimizing post harvest losses and by enhancing farmers' skills in modern farming. Approximately 1,100 farmers will participate in the program.

Eastern Garment Alliance
In order to rebuild economic security in the Eastern Province of Sri Lanka, this alliance with a local garment company will invest in a ready-made garment factory in Samanthurai in the Ampara District. The ready-made apparel manufacturing plant will consist of 15-20 machine lines and more than 1,000 employees.

Mission Director Rebecca Cohn said, "The U.S. Agency for International Development/Sri Lanka is proud to announce these new public private alliances. We are committed to helping conflict-affected communities return to normalcy through the creation of sustainable jobs and increased business opportunities. USAID strongly believes that the private sector is the most important engine for economic growth in Sri Lanka."

The American people, through the U.S. Agency for International Development, have provided development and humanitarian assistance in developing countries worldwide for nearly 50 years. Since 1956, USAID/Sri Lanka has invested nearly Rs.230 billion to benefit all the people of Sri Lanka.

U.S. Agency for International Development

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