Clothing Colony

The Board of Investment (BOI) will tap European Funding agencies to finance an apparel backward integration zone, with the sector expected to be a key investment driver this year. The Board of Investment (BOI) will tap European Funding agencies to finance an apparel backward integration zone, with the sector expected to be a key investment driver this year. Apparel, with the phase out of quotas next year is on the BOI’s shortlist, along with infrastructure, IT, and tourism as key growth areas over the next 12 months.

“With the lapse of the Multi Fibre Agreement (MFA) in 2004, that also means we will have to look at textile mills, spinning mills and reviving dormant factories,” BOI Chief Saliya Wickremasuriya told Lanka Business Online in a recent interview.

“We are looking at specific projects in that sector and are planning to create an apparel backward integration zone, which can be electricity, water intensive and effluent heavy.”

But apparel projects generally have a long gestation, and the BOI is toying with the idea of added incentives to make the apparel industrial zone investor attractive.

The State’s investment promotion arm is trying to tap into Europ