Govt. starts $ 2 m drive to boost footwear and leather sector

The Government is injecting US $ 2 m to upgrade its booming footwear and leather sector.

It has started work on an exclusive industrial zone designated for leather and footwear production and is also launching special human resource training initiatives while enlisting a national university to upgrade the leather and footwear sector which netted US$ 36 m in export revenues in 2011.

The Sri Lankan footwear and leather sectors players are also upbeat on the prospects of the latest fair. “I am pleased to announce, that we will be setting up a footwear training school in collaboration with SLITA with the assistance of Indian Footwear Development Design Institute at a cost of Rs. 120 million ($ 1 m), and we are also started preliminary work on a new leather and footwear industrial zone at a cost of Rs. 120 million ($ 1 m) at Wanathavilluwa region focus on leather tanning manufacturing as well as footwear. We are also planning to initiate a Degree Programme on Footwear and Leather at the University of Moratuwa,” announced Minister of Industry and Commerce Rishad Bathiudeen.

Minister Bathiudeen was addressing the inauguration event of the Leather and Footwear Fair 2012 at the BMICH Conventions Centre, Colombo. Minister of Economic Development Basil Rajapaksa took part as the Chief Guest along with Deputy Minister of Industry and Commerce Jayarathna Herath.



The fair opened on 10 February morning amidst considerable local and Indian industry stakeholder presence. The fourth in a series, the fair has also received a boost due to strong participation by IFCOMA, the Indian leather and footwear manufacturers’ collective called the Indian Footwear Components Manufacturers Association. IFCOMA has brought down 25 Indian footwear and leather manufacturing firms for the fair which will end on Sunday 12 February. Also taking part are exhibitors from Italy and China.

“I also stress that the plentiful supply of trainable human resources available in Sri Lanka is a vital strategy, if not the key, to advance Sri Lanka’s footwear and leather industry to the international levels. To this end I am pleased to announce that our neighbour India has agreed to extend its valuable assistance to Sri Lanka’s footwear industry following a request made by myself in 2011 during the fourth Indian leather Buyer-Seller Meet held in Colombo for which I thank our supportive neighbour India. The assistance will be for skills building and training for the local footwear and leather industry. I stress that we still import the bulk of our leather requirements directly from Chennai. And all of us are aware that India has become the number two footwear producer in the world. I have no doubts that Sri Lanka’s 30,000 strong footwear and leather work-force will immensely benefit from this valuable assistance,” Minister Bathiudeen said.

My foot?

Economic Development Basil Rajapaksa takes a closer look at a leather shoe on display in one of the stalls after opening the Footwear and Leather Fair at the BMICH yesterday. Industry and Commerce Minister Rishad Bathiudeen (second from right) is among those equally interested in the shoe

He added: “The development vision of our President Mahinda Rajapaksa specifically highlights the important role a vibrant export sector can play in achieving the future prosperity of Sri Lanka.  To this end I am pleased to note that the value of our exports has reached US$ 9.5 billion during the first 11 months of 2011 from US$ 7.8 billion in the same period in 2010.  This registers an impressive growth of 22 per cent.”

“One of the key sectors contributing to our economy in our new resurgence is apparels, which succeeded in giving an international brand appeal to Sri Lanka. I am pleased to observe that our Footwear and Leather sector too is closely following on the same path as apparels which brought us international brand recognition.”

Speaking of the objectives of the fair, Minister Bathiudeen said: “This show began in a small scale in 2007.  I am highly pleased to note that it has become an international event over a very short time drawing exhibitors from countries such as Italy, India and China, which are well-known for their leather industry. The objective of this fair is multi-faceted. First and foremost this is an exercise to give due recognition to the Sri Lankan leather and footwear industry both locally and internationally showcasing its talents and capabilities to the world. The fair is also an occasion for us to identify the most creative and skilled SME manufactures who could be developed as potential exporters.

“The fair also helps us to build strategic linkages between the SMEs and the large scale manufacturers for the purpose of creating a wider awareness of the opportunities available for Sri Lanka in the international market.  Similarly the fair could also be, an excellent occasion for us, to promote South Asia regional cooperation in this sector. While providing an opportunity to identify the creativity of small and medium enterprises and develop themselves as potential exporters by establishing contacts with large scale manufacturers I believe that this show will also assist the exhibitors to forge backward and forward industry linkages at both local and international levels.  In short, if we are to compete successfully in this sector, a collaborative approach is the way forward.”

Praising Minister of Economic Development Basil Rajapaksa’s contribution to Sri Lanka’s industries and the exporter community Minister Bathiudeen said: “I would like to convey my sincere appreciation on behalf of both industrialists and exporters to Minister of Economic Development Basil Rajapaksa for his commitment to address their issues. I commend Basil Rajapaksa as the Economic Development Minister for the keen interest and attention he personally shows whenever we inform him of any industry and export issues and his prompt action has resolved many difficult situations faced by industrialists and exporters of Sri Lanka in the past and also he continues to give on-going support to us. Minister Basil Rajapaksa, please accept our warmest appreciation for your committed assistance to us.”

Export Development Board of Sri Lanka Chairman Janaka Ratnayaka addressing the occasion said: “This sector has registered a positive growth rate. Now our footwear is also catering to such international brands as Nike and Dexter. The leather manufacturers have now expanded to produce smaller leather products. The main markets for our footwear are Italy, Germany, UK and France while the main markets for our leather products are USA and Germany.”

 “We are very privileged to be a part of this prestigious fair,” said Pradeep Aggarwal, General Secretary of IFCOMA addressing the occasion. “IFCOMA has been a part of Sri Lanka footwear industry for a decade now and we have been conducting regular buyer-seller meets in Sri Lanka. Our objective is to create direct country to country industry linkages, specially component manufacturers in India and footwear and leather manufacturers in Sri Lanka. We have been quite successful in this as we have observed a substantial increase in trade between the two countries in this sector.”

Many Sri Lankan leather and footwear manufacturers taking part in the fair were upbeat as the latest show has given them an opportunity to forge wider industry linkages. “This year we have a wider variety of producers from this sector,” said Chandralal De Silva, Chairman/CEO of Bettans Lanka Exports.

“We want to see increased local raw material inputs to the industry. We will benefit immensely if we can increase it to 70%,” De Silva said. De Silva is a pioneering footwear manufacturer in Sri Lanka and his Bettans Lanka Exports is a supplier to Fiordibaci label, the ladies footwear range from Italy.