TEXTILE ZONE DEVELOPMENT

ERAVUR-BATTICALOA

Batticaloa

LOCATION

300 Acres

Land Extent

USD 5 Mn

Minimum Investment

Project Overview

The Zone is declared as a “Strategic Development Project” (SDP) and, strategic textile manufacturing investments established within the borders of the zone are eligible for benefits under Sri Lanka’s SDP Act. With over ~300 acres, the zone will provide opportunities for multiple verticals relating to the manufacture of textiles. Manufacturers can establish plants in this dedicated area, complete with a host of amenities and facilities including a sea outfall, central wastewater treatment plant and pre-cleared environmental approvals for all products. This processing park aims to reduce material lead time with the availability of locally sourced fabric to reduce input costs.

Project/ownership structure

Foreign Direct Investments (FDI), Domestic private investment

Project incentives:

5-10-year tax holiday for exports (Duration of tax breaks based on size of investment, type of product to be manufactured, market orientation, type of patent rights, domestic value addition, manufacturing quality etc.)
0% duty & taxes on imported capital goods & raw materials
Exemptions for Import Substitution under Value Added Tax (VAT), Port & Airport Levy (PAL), Customs Import Duty (CID), Commodity Export Subsidy Scheme (CESS)

Other incentives:

Dividends to non-resident entities are exempt from income and withholding taxes
Sri Lanka enjoys double-tax treaties with 46 nations
100% repatriation of capital and profits permitted
Access to talented human capital with a 92% literacy rate that is 30% lower in cost vs region

Strategic location

Located in the Batticaloa district with a population of 500,000+ representing a largely untapped labor pool.

Strategic Development Project

With over ~300 acres, the zone will provide opportunities for multiple verticals relating to the manufacture of textiles and manufacturers can establish manufacturing plants in this dedicated area, that comes complete with a host of amenities and facilities including a sea outfall, central wastewater treatment plant and pre-cleared environmental approvals for all products.

Pre-approved for Multiple Product Opportunities:

  • Textile Dying
  • Textile Washing
  • Textile Knitting
  • Textile Weaving
  • Other Associated activities