USAID's budget cut may affect Sri Lankan garment sector

03 May '13

2 min read

The decision of United States Agency for International Development (USAID) to reduce its budget to Sri Lanka from 2014 could affect the garment industry in the country.

“USAID has made its decision to reduce its footprints in Sri Lanka due to the mounting concerns over reconciliation and governance in the country coupled with its continuing economic growth,” an USAID official told fibre2fashion.

Informing further, the official says, “The implementation of reduced USAID will begin from 2014 and we will be managing smaller programs and budgets with fewer staff in Sri Lanka.”

The reduced budget of USAID for Sri Lanka may mean a decreased support by the American organization to the growth of the apparel sector in the island country.

Actually, USAID began its Public Private Alliances initiative in 2008, aiming to boost economic growth in conflict-affected regions of Sri Lanka and it generated jobs for thousands in the country.

In 2010, the USAID forged four business alliances with Sri Lankan private companies under USAID's Public/Private Alliance (PPA) Program to create 10,000 full-time jobs in northern Sri Lanka.

Subsequently in 2012, USAID opened three garment factories in Sri Lanka in Thirukkovil, Ninthavur and Maha Oya under the Eastern Garment Alliance, a public private alliance between USAID and Daya Apparel Pvt Ltd. The three factories generated jobs for over 1,000 men and women from different ethnic backgrounds in conflict-affected Ampara.

Since 1956, the U.S. government has invested over US$2 billion to benefit all the people of Sri Lanka.

The USAID have provided development and humanitarian assistance in developing countries worldwide for nearly 50 years.

Fibre2fashion News Desk - India

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