President wants Eravur in 2021 Budget | Daily News


 

President wants Eravur in 2021 Budget

President Gotabaya Rajapaksa has directed the state agencies dealing with infrastructure to inform the expenditure needed for the infrastructure of the planned Eravur Investment Zone to be included in the 2021 Budget.

This is where the President had asked Government heads in state agencies such as the National Water Supply and Drainage Board, Ceylon Electricity Board, Sri Lanka Telecom, the Road Development Authority to provide him with a expenditure from et al which would be presented to Parliament in November to be included in the 2021 Budget.

The background to this stems from the reality that Sri Lanka gets lesser concessions from the European Union when it comes to General Systems of Preferences Plus by virtue of this country being a Middle Income Country vis a vis countries such as Bangladesh which are considered to be least developed countries, JAAF Secretary General Tuli Cooray told Daily News Finance yesterday.

This will also mean that the more raw materials that Sri Lanka manufactures for the apparel industry within the country such as the fabric and accessories , the higher the benefits which it will get from the EU, he said.

He also said that Sri Lanka also purchased US $ 881 million worth of fabric and accessories from the domestic market from the seven fabric factories which are in situated in Sri Lanka and that there was a dire need for increasing the production of the raw material basis within Sri Lanka itself. Sri Lanka, although eligible to export all apparel products on a duty free basis to the EU under the GSP+ provided by the country of origin rules, and also due to the products that are exported from Sri Lanka not having the ability to meet the country of origin rules, only 47% of the products are getting the duty free facility for the importers in those countries.

The remainder is being manufactured with fabric from other sources and when they enter the EU markets, the importer is liable to pay import duties. It is in that context that the Eravur Investment Zone is important, which is aimed at increasing the local raw material base.

“ In addition to enhancing the GSP+ base, the availability of such a fabric base will also minimize the inventory cost improve the Just In Time ( JIT) delivery and flexibility in meeting the colour trends,” he remarked.

Meanwhile, in a move which is seen as positive to boost the local textile and apparel manufacturing industry, President Gotabaya Rajapaksa has issued a special circular banning the import of garments, State Minister of Batik and Handloom Textiles DayasiriJayasekara said.

The local manufacture of garments should be empowered, he added.


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