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By Ravi Ladduwahetty

Sri Lanka's US$ 2 billion apparel industry will get a further boost with plans under way for the United States and the European Union to slash tariff barriers on imports in May, leading to the eventuality of the island nation emerging as the regional textile manufacturing base.

Heads of two frontline apparel manufacturing Association's while commending the efforts of the Government in its thrust towards this far reaching goal, said that Sri Lanka garment exports will be more competitive with the potential to raise more orders in these two pivotal markets. They said that Sri Lanka should be the ideal manufacturing base for textiles and accessories with enhanced business.

This follows the efforts of the Government to have a Free Trade Agreement (FTA) with the United States with slashes the tariff barriers and where a series of negotiations have been conducted by Minister of Enterprise Development, Investment Promotion, Industrial Policy, and Constitutional Affairs, Prof. G.L. Peiris and Minister of Commerce and Consumer Affairs Ravi Karunanayake with the USA and the EU aiming at making Sri Lanka's apparel exports more competitive in the global apparel market.

A United States based firm of Attorneys at Law- Sandler Travis and Rosenburg (ST&R) have been jointly retained by the Government of Sri Lanka and the local apparel industry to not only represent Sri Lanka but also to promote the case for the setting up of a Free Trade Agreement between the two countries. This move has been on the directive of Prime Minister Ranil Wickremesinghe, who has even agreed to have a Special Trade Envoy in the Sri Lanka's mission in Washington.

Chairman of the 214-member Sri Lanka Apparel Exporters' Association (SLAEA) Ranjan Casie Chetty told the Daily News that the proposed tariff reduction and the Free Trade Agreement with the United States should bolster local apparel exports by at least 15 - 20 percent and we should be able to compete with the Sub Saharan States and also Caribbean nations as the landed costs will be substantially reduced," he said.

The Government has taken a positive step in the right direction to further enhance apparel exports which account for 52 percent of all exports and which netted US$ 2.3 billion (around Rs. 216 billion) last year, he said.

Casie Chetty, who is also Company Secretary of the highly diversified Aitken Spence Group of Companies, commended the Government for its budget proposal of permitting the apparel industry to feed 2 to 3 percent of the export rejects to the local market and said that this would even prompt overseas buyers to purchase these products.

Chairman of the 175-member National Apparel Exporters' Association (NAEA) Premal Mendis told the Daily News that Sri Lanka should be the ideal manufacturing base for textiles and accessories in the event of the FTA with the US being worked out.

This would substantially catalyse the local industry which has been badly hit following the recession in the United States and the European Union, which is expected to continue for another nine months to one year before Sri Lanka's exports could regain its pristine glory, he said.

He said that Sri Lanka might be able to import high quality fabric even from the United States if the tariff barriers are slashed.

Authoritative official sources that this will also be the subject of discussion when Prime Minister Ranil Wickremesinghe is expected to embark on an official visit to the United States in May.

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