Business
Eravur Fabric Park could transform sustainable textile manufacture in Sri Lanka
Since the first announcement in June 2020, expectations have been high on the potential of the Eravur Fabric Processing Park to catalyze a new era for Sri Lankan textile and apparel manufacture.
Supported through the Ministry of Industry and Commerce and the Board of Investment (BOI) of Sri Lanka, working in close collaboration with the Joint Apparel Association Forum (JAAF), the apex body of the apparel industry in Sri Lanka, the vision for Eravur is beginning to take shape.
Of the allocated approx 300 acres of land, fifty have been allocated for the Park’s maiden investment of US$ 35 million to establish a state-of-the-art fabric mill. Negotiations are also underway with two international companies to infuse mega investments for the remainder. The Park is estimated to attract a cumulative investment of US$ 300 million. The zone is also seeking further investments towards Dyeing, Washing, Knitting, Weaving, and other associated and ancillary activities.
Cabinet approval for the Zone’s classification under the Strategic Development Projects Act was also secured, enabling the extension of tax and other relief and incentives to investors.
Rapid progress towards vertical integration
“We would like to see the first company commence commercial operations in the next 6 months to 1 year,” stated BOI Chairman Sanjaya Mohottala. “We have been very aggressive on timelines because of the clear consensus on the nationally significant value that the Park can generate. At present, all land has been demarcated, and water and electricity supply are being finalized. In excess of half the commercial land has been allocated or reserved, and we are seeing great demand. There is clear recognition locally and internationally as to the immediate potential. If necessary, we are able to expand the zone even further.”
Leveraged in support of Sri Lanka’s highly developed apparel manufacturing sector, which has steadily benchmarked itself on global standards for ethical, sustainable production and high levels of technical and technological expertise, Eravur’s promoters also see the project as an opportunity for Sri Lankan-made apparel to take global leadership on sustainability in its most holistic sense.
Mohottala explained further that the most immediate benefit from the Park’s establishment will be in the cost advantages and enhanced economies of scale gained through capacity expansion and vertical integration of domestic supply chains.
Currently, Sri Lanka has approximately 300 apparel manufacturing facilities across the country. By contrast, it has only 7 textile and raw material factories capable of producing fabric for export, and for conversion into garments for export. At its peak, Sri Lanka imported over 250,000 MT of fabric both for export-oriented apparel manufacturing and for local consumption in 2019, at a cost of US $ 2.2 billion.
In the context of unprecedented disruptions across global supply chains in particular and persistent commodity and currency volatility, increased availability of high quality raw materials will enable an immediate and drastic reduction in raw material costs, while also conserving foreign currency.
Increased domestic production of textiles also translates to a higher percentage of domestic value. If that threshold increases from its current 52% to 65%, it qualifies for a larger proportion of Sri Lankan exports for zero-duty benefits under GSP Plus1.
The culmination of a pioneering national journey in sustainability
The economic argument in favour of investing in Eravur is bolstered by its potential to also be the most sustainable venture of its kind in the entire Asian region, with local stakeholders having already committed to establishing extensive renewable energy facilities, water recycling facilities, science-based targets, and circular business models.
At a macro-level, increased local production capacity will contribute significantly to all these targets by reducing the end-to-end length of Sri Lanka’s apparel supply chains. This in turn enables tighter backward integration and lower carbon emissions.
Taking a cue from the Sri Lankan textile and apparel’s industry’s outstanding achievements on environmental sustainability to date, the Zone is being designed from the ground-up to facilitate and incentivize sustainability in every facet of its operations. In terms of fabric processing, the main focus is on wastewater treatment.
Mohottala continues: “Sri Lanka’s environmental standards for industries are quite stringent, especially compared with regional competitors. A key feature of the Zone will be its central wastewater treatment facility with a sea outfall, which will require a high standard of treatment. Fortunately, we already have strong expertise available locally, with many of Sri Lanka’s textile producers having established facilities on par with global best practices on wastewater treatment. We have used this to our advantage by calling in the local industry’s technical experts and drawing on their pioneering experiences to optimize wastewater treatment protocols at Eravur.”
Adding that this will be one of many positive attributes all stakeholders downstream of the textiles produced at the Zone can lay claim to, Mohottala says, “With the greater localization of production, we also gain improved oversight and control over environmental standards within the Zone. This also enables greater transparency, traceability, and accountability across the supply chain, which in turn will confer preferable competitive advantages to Sri Lankan apparel exporters. In addition, this will empower brands and retailers to make clear and credible claims to genuine sustainable sourcing.”
An end-to-end opportunity
Another significant advantage for Eravur is that it is purpose-built with the most advanced environmentally friendly technology available. This will also promote efficiency in energy and water consumption, as well as additional infrastructure for recycling and recovery of water used in production, for which the BOI aims to provide investors with additional incentives.
Notably, Eravur also enjoys a high level of solar irradiance and consistent high-wind conditions, making any manufacturing facility established in the area, ideally suited for solar and potentially, wind turbine power generation.
“Augmentation of the Zone’s energy requirements with plentiful renewable energy will enable cost savings on the energy-intensive aspects of wastewater recycling. Given the consistent annual reduction in the cost of solar and wind energy, the conditions at Eravur are another unique attraction for investment into the Zone, and potentially enables the entire supply chain to utilize global incentivizes around responsible and sustainable production,” Mohottala said.
In addition to the wastewater treatment protocols, the Zone will also include a sludge treatment facility, with further trials already underway for responsible disposal. These include tests using micro-algae to breakdown sludge, as well as utilizing sludge to fuel furnaces and as bricks with a bio-mat mask.
The final and potentially most vital contribution which the Eravur Fabric Processing Zone is the empowering impact it will have on the lives of Sri Lankans in Batticaloa. At present, the district has an estimated population of 621,887, of which, an estimated 60,912 individuals are below the poverty line. As at 2019 – prior to the pandemic – unemployment in the region stood at 6.4%
“With the development of the Zone, we will be able to create thousands of stable, well-paying direct and in-direct jobs. This could prove to be one of the most transformative developments to take place in the Eastern Province in recent history,” Mohottala concluded.
Business
US dockworkers suspend ports strike until January
The union representing tens of thousands of dockworkers across the US has agreed to suspend its strike while negotiations continue.
Members of the International Longshoremen’s Association (ILA) walked out on Tuesday at 14 major ports along the east and Gulf coats, halting container traffic from Maine to Texas.
The union says it has reached a tentative agreement on wages and will go back to work on Friday until 15 January, when they will return to the bargaining table to negotiate “all other outstanding issues”.
The action marked the first such shutdown in almost 50 years and threatened to wreak chaos amid the busy holiday shopping season and forthcoming presidential election.
The affected ports included some of the nation’s busiest, including in New York, Georgia and Texas. They are estimated by experts to handle more than a third of US imports and exports.
Businesses had been bracing for the possibility of a prolonged shutdown, which threatened to disrupt global trade and the US economy.
Many consumers had been fearful and were stocking up on some supplies, like baby formula and toilet paper.
US President Joe Biden applauded the tentative agreement in a Thursday evening statement, saying it “represents critical progress toward a strong contract”.
“I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic,” Biden said.
“And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table.”
Biden noted the need for ports to be open to “ensure the availability of critical supplies” for those hit by Hurricane Helene, which has left more than 200 people dead in the US south-east.
Under the 2018 contract that expired on Monday, dockworkers earned a base hourly wage of $20-$39, as well as other benefits, including royalties linked to container traffic.
Harold Daggett, head of the ILA, demanded companies agree to boost hourly pay by $5 for each year of the contract.
The union, which has about 47,000 active members according to federal filings, is also seeking protections against automation.
[BBC]
Business
Korea spreading its ‘soft power’ across the globe with another tool: Korean delicacies
By Sanath Nanayakkare
Whoever coined the term soft power, defining it as a country’s ability to influence others without resorting to coercive pressure, Korea is arguably mastering the art like no other country.
The Korean cultural and entertainment wave has attracted millions of fans across the world. regardless of whether they can speak or understand Korean. They support favourite K-Pop artists and largely enjoy Korean entertainment programmes. This is a predominant prevalence here in Sri Lanka too.
When such a groundbreaking feat was accomplished by some individuals in Korea, their astute governments picked up the trend, primed the game and ran with it to bolster their international reputation. For the Republic of Korea , it was not just K-Pop reaching the corners of the world; they saw the potential of turning it into a soft power and enhancing the nation’s ability to attract prospective partners and establishing Korean culture as a way of living even in countries like the United States of America.
Today Korea is nimbly threading a double weave on its soft-power fabric by promoting the country’s authentic cuisine in foreign countries.
Amid these developments, the Korean ambassador in Sri Lanka, Miyon Lee and her staff presented a ‘K-Food Showcase’ at her residence in Horton Place, Colombo recently, having flown in a master chef from Korea, which showed the strong emphasis they placed on this exercise.
Welcoming those who were part of the ‘K-Food Showcase’, the Korean ambassador said, “We all love to share food and make friends. It is a universal nature, because food is the bridge between body and soul, connecting societies and cultures. Every family boasts of its own secret recipes, and every nation and culture take pride in its own food and dishes. Just like Pol Sambol is for Sri Lankans, for Koreans, Kimchi is one of the traditional dishes that cannot do away with. There are more than 400 ways to make fermented vegetable dishes. But the spicy Kimchi we enjoy today was developed after chili pepper was first introduced in the 17th century. We make our own food by importing and adopting new ingredients and new methods from abroad.”
“Koreans love to eat, and love to watch eating as you may have guessed from Korean dramas and movies or YouTube. You may have wondered what they are eating and what they taste like. Thanks to the spread of K-culture worldwide, K-food has also become one of the trendy items to experience,” she noted.
The guests at the event got the opportunity to try dishes most often seen in Korean dramas and movies and enjoy first-hand their unique textures and flavors.
According to ambassador Miyon Lee, K-food is still an evolving trend, being created through adoption and adaptation, through their creative blend of tradition and modernity, uniqueness and universality, just like human society and culture.
A GKS ( Global Korean Scholarship) Alumni member in Sri Lanka who has spent many years in the Republic of Korea told this journalist that at first it was not easy to for her to get used to Korean food but after some time she ended up being a passionate eater of Korean delicacies given the food’s authentic taste and nutritional value.
Business
Sri Lanka Gem and Jewellery Association congratulates President Anura Kumara Dissanayake
The Sri Lanka Gem and Jewellery Association (SLGJA) the apex body and the voice of the country’s Gem and jewellery industry, with great pride and respect extends heartfelt congratulations to His Excellency on being sworn in as the 9th President of the Democratic Socialist Republic of Sri Lanka.
SLGJA is built on a vision to empower Sri Lanka’s Gem and Jewellery industry through innovation and sustainability superiority which aims to generate global recognition whilst upholding the rich heritage for future generations. The Association’s mission is to alleviate Sri Lanka’s Gem and Jewellery Industry through etical practices, facilitate market access, advocate sustainable sourcing nurture talent for the industry’s continued growth, global competitiveness and socio-economic contribution. Functioning as the advocate for Sri Lanka’s Gem and Jewellery sector, the SLGJA lobbies the industry related concerns to governmental and other related bodies. SLGJA is also the organizer of FACETS Sri Lanka International Gem and Jewellery Show over 31 years which is now the cornerstone for the industry players, fostering collaboration, innovation and international partnerships.
As an industry that has long been an integral part of Sri Lanka’s rich cultural heritage and economic strength, we are confident that under HE’s visionary leadership, our nation will continue to thrive and reach new heights of prosperity. His commitment to progress, national unity, and the well-being of all Sri Lankans aligns closely with the values and aspirations of the Gem and Jewellery sector, which remains a foundation of both the country’s identity and its economy.
Insightful discussions that were held with His Excellency and senior members of the party before the elections, where the party understood the unique challenges and opportunities faced by the gem and jewellery industry has given great confidence in HE’s leadership and the bright future that lies ahead for the Gem and Jewellery sector.
The gem and jewellery industry plays a vital role in enhancing Sri Lanka’s global reputation. SLGJA is eager to work closely with HE’s administration to further develop and promote this key industry. Together, more opportunities for sustainable growth could be created, increasing the international competitiveness, and ensure the long-term success of the industry for future generations.
SLGJA is confident that HE’s administration will continue to take progressive steps to support and strengthen industries that contribute significantly to the national economy. The SLGJA stands ready to assist in any initiatives that foster economic development, promote exports, and elevate Sri Lanka’s standing as a global leader in the gem and jewellery trade. (SLGJA)
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