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Sri
Lanka is a vibrant country of 22 million people;
rich in its diversity of culture, race, language
and religion. The island has an abundance of natural
resources, fauna and flora, mountains, rivers
and beautiful beaches. It is located at the crossroads
where East meets West and is regarded as the gateway
to South Asia. |
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| Sri
Lanka's Competitive Advantages in the Garment Sector |
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A well established, export oriented manufacturing
industry. |
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A ready supply of raw material and an expanding
resource base. |
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A literate, trainable workforce. The work
force is highly productive, has good hand
to eye coordination, proven precision and
dexterity. |
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Sri Lanka's geographical location &
infrastructure advantages. |
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Compliance with the best international labour
and environmental laws and practices. |
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Prevailing Electronics Visa Information
System (ELVIS). |
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Market and investor friendly policies of
the government. |
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An array of attractive incentives extended
for the textile/apparel industry. |
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Unlimited quota free access to the EU markets.
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Preferential access to Indian market including
duty-free concessions provided by the Free
Trade Agreement (FTA) between Sri Lanka
and India. |
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A fine tuned customs and investment centre
to facilitate easy import/export procedures.
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| Potential
Areas for Investment |
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| Textiles
(including dyeing) - both woven and knitted , High
fashion garments, Accessories - such as buttons,
zippers, embroidery, labels, yarn, thread, elastic,
High Fashion/Buying Offices |
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The
Textile, Garment and Fashion Accessories Industry
In Sri Lanka
The textile and apparel sector is one of the most
significant and dynamic contributors to Sri Lanka's
overall economy. Sri Lanka's strength in textile
and apparel manufacturing lies in its ability
to produce high quality goods at competitive prices,
combined with an industry structure which is flexible
and uniquely capable in servicing leading international
brands.
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a)
A well established, export-oriented manufacturing
industry
Sri Lanka's apparel manufacturing sector is highly
developed and has evolved as an export oriented
industry for over two decades. Currently around
800 companies in Sri Lanka produce a wide range
of products including branded names -most of them
catering to the international market. Today clothing
labelled "Made in Sri Lanka" can be
found in major department stores in the USA, UK,
Germany and Australia.
b)
A ready supply of raw material and an expanding
resource base
Both foreign and local companies have set up textile
mills/finishing plants and many accessory manufacturing
industries to serve the increasing needs of the
industry. Products manufactured include buttons,
zippers, hangers, yarn, thread, fabrics, interlinings,
packaging, elastic, padding, quilting, etc. The
services offered range from, dyeing and finishing,
screen printing, embroidery, training, washing,
etc. Most existing factories have been automated
and upgraded. Computerization of areas such as
inventory/stock control has also assisted the
rapid expansion of the industry.
c)
Training and human resource development
Sri Lanka's human resource development ranks with
the leading industrialised nations that have made
significant headway in this area. The World Bank
has ranked Sri Lanka far ahead of other SAARC
and ASEAN counterparts in human resources.
The textile and apparel industry provides employment
to approximately 1/3 of the labour force involved
in the manufacturing sector. To further develop
human resource capital in the textile/apparel
industry, both the government and the private
sector have set up textile training and clothing
institutes in Sri Lanka.
The Sri Lankan apparel
industry is also recognised worldwide for adhering
to international best practices in labour standards.
d) ELVIS System
In January 2000, the Sri Lankan apparel industry
entered a new phase with the introduction of
the Electronic Visa Information System (ELVIS).
ELVIS was developed by the US government in
1991 in an effort to eliminate excess paper
processing and minimise the risk of forgeries,
counterfeiting and errors. With the introduction
of this modern electronic system the Sri Lankan
authorities, US Customs and all exporters are
able to maintain accurate records.
e) Unlimited duty
free concessions to the EU Markets
The SAARC region has been officially recognized
by the European Union as a regional group for
the purpose of granting duty free concessions
under the General System of Preferences (GSP)
scheme.
An export from any SAARC country
is eligible for preferential duty in the EU
under the " Regional Cumulation of Origin"
This enables Sri Lanka's fabric and apparel
manufacturers to be price competitive in the
EU market by sourcing cheaper raw materials
from countries throughout the SAARC region.
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