Saturday, February 7, 2015

Sri Lanka’s footwear and leather exports double within a year

Daily FT - 07/02/2015


  • EDB’s 7th Footwear & Leather Fair opens in Colombo
  • 'F&L exports surge to $ 110 m’-Rishad
  • ‘Thanks to new processing zone’-Industry
  • ‘Real value addition here is fashion’-EDB Chairman/CEO Egodage




Sri Lanka’s footwear and leather exports have doubled within just one year and posted the highest revenues so far in recent times.

The Ministry of Industry and Commerce said the sector believed the surge was due in large part to the construction of a modern tannery complex.

“Today I am pleased to announce that the $ 51 million export revenue in 2013 from this sector has more than doubled in 2014 to $ 110 million, showing this sector’s strong revenue potential. This performance supports the export promotion efforts of the 100-day program of President Maithripala Sirisena as well,” said Industry and Commerce Minister Rishad Bathiudeen while speaking in Colombo yesterday. Minister Bathiudeen was addressing the seventh edition of the annual Footwear and Leather Fair, organised by EDB and held at the BMICH.

The event – which is supported by the Industrial Development Board (IDB), Sri Lanka Footwear and Leather Products Manufacturers’ Association (SLFLPM), as well as other industry stakeholders – is set to conclude on Sunday 8 February. Also attending the opening session were Government officials and members of the diplomatic community.

“I wish to commend the more than 40000-strong workforce in this sector as well as producers and award-winning Sri Lankan footwear exporters in Sri Lanka,” the Minister said. “They are successfully supplying global footwear brands such as JC Penny, John Lewis and Bata Switzerland to such competitive markets as Italy. As you are aware, the leather and footwear industry of Sri Lanka has been identified by the Ministry of Industry and Commerce as a thrust industry for development. Ten large export companies, 30 medium companies and about 3000 small manufacturers have been engaged in this sector, contributing to its increasing export growth,” he added.

“Experienced senior individuals of the Sri Lankan footwear and leather industry, university lecturers and assessors of this sector are on the panel of judges of the design competition to be held. The increasing demand for our products creates the need for more raw materials and input. India has become a steady supplier of raw material to this sector.”

The export revenues from the F&L sector witnessed steady growth over the years. Total exports of F&L in 2010 which stood at $ 35.64 million have tripled to $ 110 million in 2014, which is also a YoY growth of 215% over 2013 values. The leading three markets for Sri Lanka’s leather products are Germany, Canada and Spain while Australia, Vietnam and Italy lead in the footwear segment.
Addressing the event, Ceylon Leather Products Plc MD/CEO Sithendra Senaratne said: “During the last ten years, the tanners in the leather sector have been given several promises by various governments to relocate them all over the country. Finally, with Minister Bathiudeen’s help, we managed to get a 100-acre site in the Mannar District. Minister Bathiudeen was kind enough to accommodate us in his own electorate. We thank him for this. We leave it in his good hands to safeguard this industry, which is a forex-earning source.”

“This industry is quite important to the Lankan economy as it contributes almost 40000 employees to the workforce,” said EDB Chairman and CEO Bandula Egodage.

“We are upgrading tech capabilities for the SME sector and encouraging value addition. We are not just selling footwear but selling fashion footwear. That is the value addition we are talking about,” he added.

One hundred and fourteen local and 11 foreign companies are displaying their products across 225 stalls at the seventh edition of the annual Footwear and Leather Fair. International buyers from Nepal, Oman, Pakistan and India are present at this year’s fair.

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