Business

Special textile production zone to come in Eravur

  • Public Finance Committee approves 400-acre zone

A new special textile production zone of 400 acres was approved by the Committee on Public Finance, chaired by MP Anura Priyadharshana Yapa, on Monday (11). 

It was disclosed at the meeting that this will be implemented by the Board of Investment (BOI) co-ordinating with the Ministry of Industry and Commerce to establish this special textile production zone in the Eravur area of Batticaloa District for local and foreign textile manufacturers under the Strategic Development Act No. 14 of 2008.

Commenting in detail, BOI Director General Pasan Wanigasekara informed the Committee that two factories in Eravur have already expressed their willingness to start production of high-quality garments for the foreign market. 

However, State Minister Dr. Nalaka Godahewa said it would be unfair if these factories are given additional benefits compared to the other factories in the country. Meanwhile, MP Prof. Ranjith Bandara also pointed out that it will be like giving away an open cheque so that only the relevant companies will have unlimited opportunities. Speaking on the occasion, Ministry of Finance Secretary to the Treasury S.R. Attygalle said that the zone was targeted at local and foreign textile manufacturers, not for the purpose of establishing garment factories.

Committee Chairman Anura Priyadharshana Yapa acknowledged the importance of such investment opportunities in view of the situation facing the country. However, this special textile manufacturing zone to be established in the Eravur area under the amendment was approved by the Committee as it is imperative that all textile manufacturers be given equal opportunities and tax relief, the Committee added.