FOOTWEAR

Leather products industry stable

Indunil Hewage

Footwear and Leather Fair in November Industry and Commerce Deputy Minister J Herath addressing the media. Ministry Industry and Commerce Additional Secretary Janaka Sugathadasa, EDB Chairman Janaka Ratnayake EDB Director General Sujatha Werakoon, EDB Executive Director Yoosuf Marikkar and Organizing Committee Chairman Ranjith Hettiarachchi were also present. Sri Lanka Export Development Board (EDB) in association with the Ministry of Industry and Commerce, Industrial Development Board, Sri Lanka Footwear and Leather Products Manufacturers Association is organizing the “Footwear and Leather Fair 2010” from November 5 to 7, 2010 at the BMICH. The fair will consist of nearly 150 stalls showcasing footwear, leather products, travel goods, raw materials, machinery, components and other related services. Local manufacturers will be able to showcase their products and local and foreign importers of raw materials and components are also encouraged to showcase their products. The EDB has already taken measures to invite foreign buyers from Italy, France, UK and Germany to visit the fair. A fashion show, a designer award ceremony and a best stall competition will be held as special events in line with the event. Educational seminars are to be held to encourage new entrepreneurs to the industry while educating manufacturers on quality and productivity improvement. IH

The footwear and leather products industry is considered as a stable industry in Sri Lanka and is empowered with a steady local base. The highly labour intensive footwear industry has a huge potential for being a main contributor to the economy of the country.

The Government, on the recommendation of the Industrial Development Ministry has offered duty free concessions to footwear and leather products manufacturers to access raw materials, machinery and equipment needed for the industry.

Accordingly, the export cess on raw hides and skins has been increased from Rs 100 to Rs 350 to protect the local leather industry. An import cess of Rs 400 has been imposed on imported shoes to protect the local footwear industry . Machinery, raw material and components used in the industry were made duty free while taking steps to lower the interest rates to support the industrialists.

Value addition in the footwear sector is between 40 percent to 50 percent and currently it employs about 30,000 people directly and indirectly. Export Development Board Chairman and CEO Janaka Ratnayake said. The footwear industry comprises ten large export companies, 30 medium scale companies and about 3000 small scale manufacturers. He made these views at a ceremony recently held to announce the Footwear and Leather Fair 2010”. The footwear industry produces various products such as canvas, rubber boots, thongs, sports shoes and leather shoes using raw materials.Sri Lankan footwear manufacturers are already supplying fashion footwear to renowned international brands.

The leather industry also manufactures travel goods and small leather goods such as gloves, wallets, bags, purses, belts, key tags in addition to manufacturing processed leather.

Leather industry includes five large scale manufacturers/exporters and 10 medium scale manufacturers around 1000 small timers.

The industry consists of 11 tanneries and produce 25 tonnes of leather per day .Most of the large companies have their own tanneries.

However, the footwear and leather industry has shown a significant growth from 2005 to 2007. However, it has shown a negative growth for 2008 in the face of the global economic crisis. The Country recorded US $ 17 million export earnings from footwear products in 2009 and it was US $ 22 million, US $ 24 million and US $ 20 million in 2008, 2007 and 2006 respectively.

Export earnings from footwear products recorded US $ 13 million in 2005. Export of leather goods from Sri Lanka recorded US $ 13.54 million in 2009 and it was US $ 16.64 million in 2008, US $ 16.78 in 2007 and US $ 26.56 million in 2006. Export of leather goods from Sri Lanka recorded US $ 29.74 million in 2005.