A textile processing zone is coming up in Sri Lanka. The zone will have factories for woven manufacturing, knitted manufacturing, dyeing and finishing.

Sri Lanka is an ideal model for speed-to-market given its strategic geographical location. Customers look at the country for reliability, quality and quick response, for which a dedicated textile facility is needed. Apparel exports of Sri Lanka grew 6.38 per cent in May 2019. From January to May apparel exports grew 8.7 per cent against the same period last year. This has been the highest growth rate recorded in the past five years. Sri Lanka’s apparel exports have made a significant impact on American, European and other major export markets around the globe. The country’s target is to reach $ 8 billion in exports by 2025. Apparels are Sri Lanka’s biggest exports to the EU. Almost 90 per cent of Sri Lankan exports to the EU are exported under GSP Plus or with zero duty. About 57 per cent of Sri Lanka’s total exports go to the EU and US markets.

The GSP Plus scheme has encouraged increased value addition within Sri Lanka and promoted backward integration, resulting in the setting up of new industries and creating new employment opportunities in the country.