United Kingdom: Foreign direct investment from the United Kingdom to Sri Lanka is almost ready to take off and is awaiting the final results of the two major elections that are happening this year in the UK and in Sri Lanka, said Sri Lankan High Commissioner Rohita Bogollagama.
He said this to Daily News Business at the first ever Sri Lanka Apparel and Textile Roadshow concluded at Royal Horticulture centre in London yesterday. The High Commissioner said that many UK and diaspora entrepreneurs who spoke to him want to invest in Sri Lanka as the investment climate has improve tremendously under the present government.
Bogollagama said that from the worst economic crisis a few months ago the government under President Ranil Wickemesinghe has installed stability, security and most importantly confidence among the business community and this makes Sri Lanka a good option to invest. The investors know these positive features and are waiting until the two elections are completed to move forward.
He recalled that Sri Lanka was involved in the apparel sector for over 2,500 years as Kuweni was knitting cotton when Prince Vijaya came to Sri Lanka suggesting that Sri Lanka may have had a strong self-sufficient weaving industry in the island. Since then we have had major trade links with China through the Silk Road as well as with India and the Middle East. He also updated the audience and said that from 1970 to 1977 there was a period of restrictions in the country on exports and many industries were sourced within. Bogollagama said that he was involved with the apparel industry for over 30 years as a Minister and as a BOI chairman and promoted it.
The High Commissioner said that the sector has faced numerous challenges, including declining demand in high-end markets like in the UK, EU and the US etc, over the past two years.
“Also, there are difficulties and serious concerns on the applicable rules of origins on textiles and apparel under the UK’s new Developing Country Trading Schemes – the DCTS. We also have to follow the present dynamics such as in the AI and the fashion industry etc. and also the current trends in online purchase of apparel rather than buying in traditional way in person purchases. We noted that the online apparel purchase in the UK has been over 40% higher than food, footwear, jewellery and beauty products etc.”
Nearly 90% of the young generation of the UK tends to purchase apparel products online.
“So in response to all these and other challenges, the ‘Source Sri Lanka’ event has emerged as a strategic initiative of Sri Lanka to identify new market access and build relationships with our new and existing UK buyers. We are also meeting at an opportune time after the 40th annual London Fashion week concluding last week. Hence London is in the move to talk about fashion.”
lords, senior members of the diplomatic corps, UK Government Officials and representatives of various Commonwealth bodies, representatives of Chambers of Commerce and various product, industry and community associations, media and press representatives participated.
