United States footwear giant Nike now sourcing from Sri Lanka

Sri Lanka’s Footwear and Leather (F&L) sector is not only an employer with promise but also demonstrates significant value addition. Meanwhile, the F&L praises the government for its initiatives but says the emerging ‘footwear assembly sector’ is a threat to the industry. “Our average annual national production of footwear alone is over 30 million pairs at a value of $ 47 Mn. Our footwear and leather value addition is around 45% and in 2012 we exported $ 31 Mn footwear and leather to global markets” Rishad Bathiudeen, Minister of Industry and Commerce said.

Rishad Bathiudeen, Minister of Industry and Commerce greets, P. D. Nimalasiri, on his induction as the new President, SLFLPMA

Minister Bathiudeen was addressing the ceremonial session of the AGM of Sri Lanka Footwear and Leather Products Manufacturers Association (SLFLPMA) held at the Auditorium of EDB in Colombo. This is the second such AGM after SLFLPMA’s 2010 reformation.

SLFLPMA has 54 Companies as members and is the leading private sector body in Sri Lanka’s representing large scale footwear and leather firms. “The government has identified this as a thrust sector with great contributing potential to our exports goal of $ 20 Bn by 2020 as per the committed vision of President Mahinda Rajapaksa” said Minister Bathiudeen and added: “Today I am also pleased to inform you that Sri Lanka has successfully taken part in the first ever Leather Industry Association of South Asia sessions by UNCTAD held in Chennai.

This UNCTAD facilitated forum was the first industry-specific association to be formulated in South Asia.

The inclusion of Sri Lanka in these pioneering session shows that our leather and footwear industry has clearly established its reputation as a key supplier in the region’s $ 2.5 Bn leather market as well as the supply chain.”

“In fact, when it comes to South Asian Intra-regional footwear and leather exports Sri Lanka has earned the third place with 16% of region’s total exports closely following India and Bangladesh.

It is also estimated that South Asia’s leather market potential is more than $ 2.5 Bn -three times of the current trade levels.

Increased value addition in this sector can bring greater benefits to this industry which has strong employment potential, due to its labour intensive nature. Our footwear and leather value addition, is around 45% and more than 20,000 people are directly employed in this sector.