Home / Knowledge / News / Textiles / S'Lanka becomes attractive textile investment destination
S'Lanka becomes attractive textile investment destination
Dec '11
The Sri Lankan apparel industry spends more than 60 percent of the amount it generates through exports, on imports of key raw materials like yarn and fabrics.

This presents an opportunity for the highly developed textile industry in neighbouring countries like India and Pakistan to invest in the Sri Lankan textile sector.

Of the US $4 billion it generated through clothing exports, the island imported raw materials to the tune of $2.5 billion.

The Sri Lankan garment industry has established itself as a global supplier of high-end fashion clothing to retailers like, which has helped it establish itself as a high-end garment producer of garments servicing leading international brands.

These global buyers include well-known retailers and brands as Victoria's Secret, Marks and Spencer, Nike, Tommy Hilfiger, Abercrombie and Fitch, Gap, Ann Taylor, etc.

In the budgetary announcement made in November this year, the Sri Lankan President abolished duties on yarn imports from January 2012.

In the budget, President Rajapaksa has also proposed removing customs duty and value-added tax imposed on textile machinery and other equipment imported to modernise the textile sector.

Other proposals include, extending long-term tax holidays for new investments and reducing income tax on large investments in existing textile mills.

In order to meet the increase in demand from the domestic markets, the government has even permitted deemed garment exporters to sell up to 25 percent of their production in local markets, subject to that the rest of the 75 percent will be exported.

This measure will help in restricting imports of clothing and in turn save precious foreign exchange.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 21st Oct 2016

China’s garment retail sales grow 7.2% in Jan-Sept ’16

Retail sales of garments, footwear, hats and knitwear of Chinese...

Mike Preston, executive director of the Arkansas Economic Development Commission (AEDC), signing MoU with Tang from Suzhou Tianyuan Garments company. Courtesy: Government of Arkansas

Apparel/Garments | On 21st Oct 2016

Suzhou Tianyuan to open $20 mn garment factory in US

Suzhou Tianyuan Garments company, a Chinese manufacturer of casual...

Textiles | On 21st Oct 2016

Pakistan’s textile exports fall 5.96% y-o-y in Q1 FY17

The value of textile and garment exports made by Pakistan decreased...

Interviews View All

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search