Feb 19, 2010 (LBO) – The Board of Investment, Sri Lanka’s investment promotion agency, said it has given approval for investors, including a Hong Kong firm, to set up clothing factories for export. The announcement came just days after the European Union said it will withdraw duty free access given to Sri Lanka because of concerns over alleged human rights abuses.
The BOI said in a statement that it has signed an investment agreement for 35 million rupees with Interfashion Limited, a firm sponsored by Banke Textile Asia of Hong Kong.
The company will manufacture high-value ladies formal wear for Marks & Spencer and Tesco.
The company expects to operate with a 60,000 production capacity a month.
The production facility, located at Nuwara Eliya in the central hills, will provide initial employment for a workforce of 250 which is expected to be increased up to 1,200.
BOI approval entitles investors to concessions like tax breaks and duty free imports of machinery and raw materials while further incentives are given to firms setting up plants in rural areas.
The BOI also said it signed another investment agreement with Trendywear Adhikarigama which will invest 315