The Sri Lankan footwear industry can expect a huge boom as the Government has lifted the duty structure on footwear machinery and raw materials.
The Government decided to lift the 2.5 percent taxes on footwear manufacturing machinery and raw material.
Though this seems a small amount, compared with the prices of machinery it will reflect as a large concession for industrialists, Leather Footwear Advisory Council Chairman Rangith Hettiarachchy told Daily News Business. The tax concession will strengthen the local industrialists with more capacity to cater to the local as well as international market. It will enable not only large companies but also SMEs to cater to the export market as suppliers.
“When the tax concession is given on machinery, the SMEs in the industry can introduce new technologies. The industrialists can target the international market and the Sri Lankan footwear can foresee a better future,” he said.
Sri Lanka’s footwear exports was US $ 17 million and leather and footwear is a product under the GSP+ concession. Sri Lankan footwear exports can also have negative effects if EU denies the GSP+ concession to Sri Lanka. Hettiarachchy said Sri Lanka has to come out with exclusive designs and new developments in the industry to overcome the situation. Sri Lanka needs to equip with the latest technology to compete with countries such as China.
“We were able to establish good relations with Indian footwear manufacturers after the Buyer-Seller meeting held in Sri Lanka recently and the outcome can be expected in few months time with an industry growth,” he said.
source - www.dailynews.lk
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