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MAS Holdings Sri Lanka sets up US$70mn knitting plant

Nov 29, 2012 (LBO) - Sri Lanka's MAS Holdings, an apparel exporter is setting up a 70 million US dollar knit fabric plant at its own industrial park, the state investment promotion agency said.
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BOI said the factory reflected a "spirit of innovation" in Sri Lanka's apparel industry and a state goal of reducing imported inputs.
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MAS Fabrics (Private) Ltd will be located in Thulhiriya, north east of Colombo, Sri Lanka's Board of Investment said in a statement.

"We partner with those who identify with our own value proposition; we are focused on innovation, and are eager to invest in it," Sharad Amalean, deputy chairman of MAS Holdings was quoted as saying by the BOI.

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"This is our biggest technology driven investment to date¦"

Thulhiriya used to house a now-defunct state-run textile mill which was built when an anti-import anti-free trade ideology was at its height and 'import substitution' was a goal in itself.

At the time Sri Lankan citizens were cornered by high import duties and forced to buy kerosene smelling fabric made by a state-run fabric milling oligopoly.

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They were later privatized, and failed after citizens were given more freedom to buy cloth to cover

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