New industrial zone in Batti for fabric processing

Friday, 30 October 2020 00:15 -     - {{hitsCtrl.values.hits}}


  • Zone sought after by apparel industry gets Cabinet nod
  • 275 acres to be allocated as Strategic Development Project 
  • Industry hopes to promote value addition, attract investment and generate new jobs

Cabinet this week approved the move to set up a 275-acre Industrial Zone for Fabric Processing Enterprises in Eravurpattu, Batticaloa, following a proposal by the Ministry of Industries. 

Cabinet also gave approval to declare the industrial zone as a “Strategic Development Project,” according to Co-Cabinet Spokesman Dr. Ramesh Pathirana.

The establishment of the zone has been identified as a priority project by the Ministry of Industry and will see the Land Reforms Commission allocate 275 acres belonging to the commission to the Board of Investment (BOI) to provide investment incentives for companies interested in investing in the zone.

Establishing a fabric processing zone has been a goal of the apparel industry for several years and experts had pointed out it could help the COVID-19-hit industry to weather turbulent external uncertainties, tap into global value chain changes and recover faster. 

Last year, the Sri Lanka Apparel Exporters of Association was optimistic of bringing down top apparel manufacturing companies to a proposed dedicated zone given that Government provided the land, water and electricity. 

The industry hopes to tap increased value addition encouraged by GSP+ and promote backward integration, resulting in the setting up of new industries and creating new employment opportunities in the country. Accordingly, the proposed textile zone could have factories ranging from woven manufacturing, knitted manufacturing, dyeing and finishing.