Sri Lanka moves to strengthen apparel exports with new investment and trade initiatives
Sri Lanka President Anura Kumara Dissanayake held a discussion with leading apparel industry business leaders and investors today (June 22) to identify swift solutions to challenges facing the sector and strengthen Sri Lanka’s export-led economy and dollar earnings.
The meeting was held at the Presidential Secretariat in Colombo and focused on the practical difficulties faced by the apparel industry as well as the support needed to successfully implement the Sri Lanka Export Development Board’s (EDB) new export strategy.
During the discussion, President Dissanayake assured the industry that the Government would provide its fullest support to strengthen the country’s export economy and outlined several policy measures planned to achieve that goal.
The President highlighted the importance of expanding industrial operations into rural areas, stating that such a move could significantly strengthen Sri Lanka’s export economy. He invited investors to participate in this initiative and discussed a Government-supported “Plug and Play” mechanism under which infrastructure and factory buildings would be provided to facilitate investments.
Explaining the current economic situation, the President said that while investments made in Sri Lankan rupees have increased, it is essential to strengthen dollar-earning sectors to manage the impact on the country’s foreign exchange position. He noted that economic recovery could be achieved by increasing dollar income while keeping rupee-denominated expenditure under control.
Special attention was also given to land-related issues faced by investors. The President said the Government would intervene to protect the value of land assets and maintain policy stability, adding that the necessary legal reforms are already underway.
The discussion also addressed difficulties faced by local raw material suppliers due to the Value Added Tax (VAT) system. The President requested business representatives to submit proposals on alternative relief measures that could be introduced to address these concerns.
Participants further discussed ways to expand free trade agreements and increase quotas to create greater market opportunities for exporters.
It was noted that the National Single Window for Trade is expected to become operational by the end of July this year to improve the efficiency of trade-related activities, while the National Single Window for Investment is scheduled to be completed by the end of the year.
The President also stressed the need to strengthen legal and technological mechanisms to prevent illicitly acquired wealth from being transferred out of the country. He said a new law to combat organised crime while safeguarding public rights would be introduced to replace the Prevention of Terrorism Act (PTA).
Industry representatives thanked the President for providing an opportunity to directly present their concerns and requested the establishment of a monthly forum to discuss operational issues with relevant officials. Responding positively, the President instructed officials to take the necessary steps to facilitate such engagements.
Among those present were Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Secretary to the Ministry of Finance, Planning and Economic Development Harshana Suriyapperuma, Controller General of Imports and Exports Upulmali Premathilaka, Chairman of the Sri Lanka Export Development Board Mangala Wijesinghe, officials from the Inland Revenue Department, Sri Lanka Customs and other relevant institutions, along with leading business leaders and investors from Sri Lanka’s apparel sector.
