Sri Lanka will be restricting textile and ready-made garment imports and increasing import tax on textiles.
The Government is considering a revision of the Rs. 100 per kilo tax currently imposed on imported cloth and may increase it to as much as Rs. 185 ($1) as part of efforts to boost the local textile industry in the next five years.
Batik, Hand loom, and Local Apparel Products State Minister Dayasiri Jayasekara said that measures to strengthen the industry will be taken forward in the next two months.
While adding that tax reforms will be introduced in the future,he stated the focus was to boost local production during the next five years.
In terms of hand loom production, he said the Ministry has plans to recruit 10,000 persons for the industry and establish production in 200 villages.
The Ministry expects to boost batik, local apparel, and hand loom production by streamlining them under one organisation.
This would involve training centres for hand loom, batik, and textile manufacturing on a regional level, so that manufacturers can grow as entrepreneurs, with the necessary machinery provided.
In addition to this, a 70 acre land in Katunayake has been identified as suitable for a garment city, which will enable visitors to Sri Lanka to easily purchase garments in wholesale quantities.
(LIN)