Apparel industry initiative:

Jaffna gets four factories

MAS, Omega Lines, Orix and Timex keen:

Charumini de Silva

[Apparel industry in Jaffna]

* Four leading apparel industries to set up factories

* Over US$ 12 million investment with over 4,000 jobs

* High availability for human resources in North

* BOI offers attractive incentives

The Traditional Industries and Small Enterprise Development Ministry together with the Board of Investment (BOI) is planning to support four major companies - MAS Holdings, Omega Lines, Orix and Timex to set up factories in Jaffna.

The discussions between the Ministry and the BOI had with these companies were successful. The investors are keen on setting up factories in the Achchuveli Industrial Estate.

These four companies will be offered 25 acres to setup their factories, Traditional Industries and Small Enterprise Development Ministry Secretary P. Sivagnanasothy told Daily News Business.

He said this is the first time that major corporates are entering into the Jaffna peninsula. This project will bring around US$ 12 million investments while all four companies will generate over 4,000 jobs for youth in the Northern province.

The Achchuveli Industrial Estate has 65 acres.

These companies will be given 25 acres to set up their factories while the balance 40 acres will be given to set up small and medium industries.

The implication of offering the 40 acres of land in the industrial estate to the small and medium industries granted the approval by the Planning Ministry. We seek for external resources to fund the small and medium industries, he said.

The project will offer a great opportunity for people in the Northern province to contribute to the economic development.

It will also help the people to uplift their livelihood and bring down the unemployment rate in the province.

Speaking to the Daily News Business a BOI official said the BOI is taking necessary initiatives to develop industries in Northern Province to create more jobs.

This will also benefit the companies to expand their business and to increase their workforce. Setting up of factories will not be done immediately as these are long-term projects.

The infrastructure in the area needs further development. However, we expect that with leading companies entering into the Northern province will encourage the rest of the companies too.

The BOI offers attractive incentives with long tax holidays for these companies and it is one of the reasons why the companies were interested to establish their factories in Jaffna.

This is a win-win situation for the people and for the companies, he said.

The interest shown by the corporate sector was commendable as Sri Lanka is moving towards achieving a sustainable economic growth.