Eravur Fabric Park to draw over USD 300 mn FDI in next 2 years | Daily News
BOI inks USD 1.2 bn projects for first six months

Eravur Fabric Park to draw over USD 300 mn FDI in next 2 years

Eravur Fabric Park in Batticaloa
Eravur Fabric Park in Batticaloa

Despite the current economic issues there is an overwhelming foreign and local investor response for the Eravur Fabric Processing Park in Batticaloa by the end of the year it will have over USD 300 million for the next two years FDI investment.

The zone is also seeking further investments towards Dyeing, Washing, Knitting, Weaving, and other associated and ancillary activities.

An Indian company has Pledged USD 35 million for its first stage while top US companies too have shown interest to invest in the park. US company Star Garment will also invest this year while some of the existing local companies like Ocean Lanka, ATG Gloves Lanka have requested ‘land slots’ to invest in the Eravur Fabric Processing Park.

DG Renuka Weerakone

In addition, it will also help to reduce around $500 million annually needed to import fabric and accessories needed for export-oriented apparel manufacturing and for local consumption. This amounted to US $ 2.2 billion in 2019 when the industry was at its peak before the C-19 pandemic.

“The Indian company under its first phase will set up a state-of-the-art fabric mill leading towards the manufacturing of yarn, ‘’ said BOI Director General Renuka M Weerakone.

This zone will comprise 10 to 15 factories and will create about 5,000 direct and a large number of indirect jobs and the park mainly to the district where an estimated 60,912 individuals are below the poverty line making it one of the biggest employment generating projects in the region.

“We have got overwhelming response from both local and foreign companies and due to this we will not have any more room to provide for investors in the park.”

The park is supported through the Ministry of Industry and Commerce and BOI, working in close collaboration with the Joint Apparel Association Forum (JAAF), the vision for Eravur is beginning to take shape. The government has invested Rs.5 billion to set up the park.

Commenting on the FDI’s she said that Sri Lanka has signed up 70 agreements to the value of USD 1.2 billion up to the end of July 2022 with USD 900 million coming from foreign investments.”

She said that the integration of the visa recommendation system in coordination with the Department of Immigration and Emigration and the Ministry of Defense is now completed. Under the newly launched system, visa recommendations will be granted under three visa categories namely, entry visas, residence visas, and when extending visas.

“We are now looking at offering a similar system for lower scale workers who are engaged in Chinese projects, Colombo Dockyard and in the construction sector companies.” 

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