SRI LANKA: Govt. offers industry friendly budget

COLOMBO: Sri Lankan government offered incentives to the key garment industry in the Budget 2005, close to the end of a preferential trade agreement with the U.S.

"We welcome the moves. Most of our proposals to the government have been accepted," Tuli Cooray told reporters.

Cooray heads a committee made up of private sector representatives and government officials responsible for mapping out a long-term survival plan for the country's garments industry when the Multi-Fiber Agreement with the U.S. expires next month.

He said the government has taken "a correct position to safeguard the garments industry amid increased competition."

In its budget, the government exempted a value added tax on the import of textiles and ancillary inputs for garment manufacturers.

The VAT on garment buying offices, which facilitate overseas buyers to place their orders with Sri Lankan manufacturers, was also removed.

"When quotas are removed they (buying offices) would become trade representatives who could support sourcing from Sri Lanka," Finance Minister Sarath Amunugama said in his budget speech Thursday.

The government has pledged financial assistance for garment manufacturing companies to modernize operations.

It has also pledged LKR150 million to fund productivity improvement measures in the apparel industry and international-image building campaigns.

The budget also proposed the setting up of an industrial park to facilitate fabric manufacturing for the apparel industry.

Currently most garment manufacturers import their fabrics.

Under the multi-fiber agreement, which came into effect in 1974, the U.S. is obliged to buy a set quota of garments and textiles from Sri Lanka and several other emerging-market countries.

Garment manufacturers have said there are signs that most U.S. buyers of Sri Lankan garments are eyeing cheaper manufacturers like China, Mexico and other South Asian nations.

According to Cooray, despite some immediate adjustments, the industry will stay afloat helped by a long-term strategic plan.

The U.S. is the largest buyer of garments and textiles from Sri Lanka, accounting for over 60% of the country's total garment exports.

Textiles and garments are Sri Lanka's largest export earner and make up 50% of its total export earnings - generating an annual average of $2.5 billion.


Send your News/Releases for publication to [email protected]
Added: November 20, 2004 Source: Agencies
Start script - 1519416766.3428 Start news id check - 1519416766.3428 After news id check - 1519416766.3431 After cookie_code - 1519416766.9443 Before news detail - 1519416766.9443 After news detail - 1519416766.945 Start cat select - 1519416766.9451 After cat select - 1519416766.9453 before preg replace - 1519416766.9453 After preg replace - 1519416766.9454 Before tag engine - 1519416766.9454 After tag engine - 1519416766.9516 Before mptt engine - 1519416766.9516 After mptt engine - 1519416766.9516 Before related engine - 1519416766.9516 After related engine - 1519416766.9536 Before update hits - 1519416766.9537 After update hits - 1519416766.9539 After update news_hits - 1519416766.9554 After mem_only_views - 1519416766.9554 -------------------------------------------------- Total Exec time:- 0.61269998550415
AddThis Social Bookmark Button   Tell a friendBookmark AddThis Feed Button
Related News:

Website design by InWiz • © - 2000-2018. Internet Wizards All rights reserved. About usTerms & ConditionsDisclaimerPrivacy policy • 23-02-2018