GSP concessions to benefit footwear exporters

Ramani Kangaraarachchi

Footwear manufacturers in the country are working together to give a better product to their customers at a reasonable price as a result of the new import tax considered as a safety net.

Chairman Footwear Advisory Council Rangith Hettiarachchi said the Rs. 300 tax imposed on every pair of imported shoes from the budget was a boon and therefore shoe manufacturers have an obligation to supply better products to their local customers.

He said a number of measures have been taken with the help of Industrial Development Board, Export Development Board and the Ministry of Industrial Development to protect and upgrade the industry. Setting up of a Training Institute is under way as there is no proper training institute so far in the country.

However two teams have been sent to India for training as leather producers and designers for which half the cost was borne by the Industrial Development Board, Hettiarachchi said.

Assistant Director Export Development Board Sriyani de Saram said EU concessions under the new GSP plus scheme given only to Sri Lanka for special reasons is a great advantage which will increase exports.

The anti-dumping duties imposed to China and Vietnam by the EU would make the Sri Lankan products competitive in the international market.

Referring to the first ever footwear and leather product exhibition held in November last year she said it was a turning point of the industry where all the objectives were achieved. Therefore a definite increase of exports could be expected this year as a result, she said.

The Chairman Exporters Association D.N. Rajapakse said exports during January to June 2007 is Rs 1035 million and it is a growth of 42.74% compared to last year.

However all exporters have to increase their exports to survive in the current situation and there is no other option to meet the challenges.

He insisted that outdated labour laws have to be updated without any delay.