Batticaloa fabric park to give fresh boost to local apparel sector

• Largest development project in Eastern province
• Facility to save SL forex amounting to US $ 500mn annually
• Four leading apparel players have expressed willingness to invest

The apparel sector is slated to receive a fresh boost with the launch of the proposed fabric park in Punnakuda, Batticaloa. 

The facility will strengthen import substitutes for the apparel industry and save the national economy foreign exchange amounting to US $ 500 million.

The first phase of the park was launched last week.
The Batticaloa fabric park is spread across 255 acres and has the potential to eight to 10 large-scale factory complexes and provide 5,000 job opportunities. The Board of Investment (BOI) said the government would spend a sum of Rs.5.5 billion on the development of infrastructure facilities over a period of time.

While the park would help Sri Lanka save the much-needed foreign exchange, it would also allow Sri Lanka to manufacture apparel made entirely from local materials for the global market, BOI Chairman Raja Edirisuriya said.
“Expectations are there that it will show the results of the economic and social growth that can be seen in the investment zones under the BOI, such as Katunayake, Biyagama, Koggala and Seethawaka,” Edirisuriya said during an inspection visit at the part along with Director General Renuka M. Weerakone.

The BOI officials assured that the project was initiated after a thorough analysis and confirming commercial viability.

The BOI officials were accompanied by a group of investors, who are geared to embark on new projects in the fabric park. Already four garment manufacturers have expressed willingness to invest.

The investment promotion body has taken the initiative in obtaining the necessary approvals from the relevant line ministries and institutions.

“We, as the BOI, aspire to establish the Textile Park in a more environmentally friendly manner,” said Weerakone.
At present, the construction work of 40 percent of access roads is completed. Arrangements have been made to supply a daily water capacity of 1500-2000 cubic meters to fulfil the water requirements of setting up the factories.
Electricity has also been supplied while the basic constructions of the wastewater treatment plant have reached completion.

According to the BOI, the investors who joined the inspection tour were leading players in the global apparel sector.

The investors expressed that the fabric park would help Sri Lanka to save money, develop sustainable import substitutes for the apparel industry and help manufacturers in the country to procure raw materials on time, the BOI said.

Sri Lanka annually imports textile raw materials used in the apparel industry worth US $ 6 billion from different countries around the globe.