EDB organises fourth footwear and leather fair in February 2012

Organised by the Sri Lanka Export Development Board in association with the Ministry of Industry and Commerce, Industrial Development Board and the Sri Lanka Footwear and Leather Products Manufacturers Association, the fair will provide a platform to showcase the talents and capabilities of the Sri Lankan footwear and leather products manufacturers.

In line with Mahinda  Chinthana – vision of  future, EDB’s aim is to  increase the export income  of the country’s  products and services from US$ 8 billion at present,  to US$ 15 billion by 2015  said EDB Chairman and Chief Executive,  Janaka Ratnayake.

The EDB has identified footwear and leather industry as an industry which could significantly   contribute to the national economy.

The main objective in organising this fair is to build the image of Sri Lanka locally and internationally as a quality manufacturer of footwear and leather goods according to Ratnayake. Further, he said that this fair will also provide a platform for the Sri Lankan manufacturers to showcase their talents to the world.  Ratnayake appreciated the contribution made by all the main stake holders of the industry to this event. The fair which commenced in year 2007 has gradually developed to an International standard.

These years fair will have 200 stalls exhibiting footwear, leather products, travel goods, and related raw material, components and accessories.

A design competition has been organised to encourage the young and upcoming designers and give recognition to them.

An exclusive fashion show with top Sri Lankan models will be held as a special event at the fair.

The EDB with the assistance of Sri Lanka Missions abroad has invited buyer delegations from EU and other regions to visit the fair. Local and foreign suppliers of raw material components and accessories will participate at this fair.

Leading International Footwear and Leather magazines such as Ars Sutoria, World Footwear, World Leather, Leather Age and Indian Leather will carry advertisements of the fair.

The footwear industry alone at present employs about 20,000 people directly and indirectly.

There are about 10 large scale manufacturers/exporters, 30 medium scale companies and about 3000 small scale manufacturers.

A diverse range of modern shoes like canvass and rubber boots, thongs, sports shoes, leather shoes etc. are produced, using a variety of raw materials.

The country’s total production capacity could be estimated to be in the range of 20 - 30 million pairs per year. This figure excludes the supply capacity for rubber thongs which by itself is estimated to be 27-30 million pairs per year.  

In the case of leather industry, apart from manufacturing processed leather and leather products, the industry includes manufacture of small leather goods such as gloves, wallets, bags, purses, belts, key tags.

There are about five large scale manufactures/exporter and around 1000 small timers.  There are around 11 tanneries producing 25 tons of leather per day.

Recognising the importance of this industry the government has offered several concessions to this industry. Duty free import of raw material components and accessories and machinery is one of them. As there is a scarcity of local leather in the country.

Export cess has been imposed on export of raw hides and skins.  

Further government has imposed an import cess to control the influx of imported shoes in the local market.  This move has created a significant growth in the local industry. However as the local market is quite small the development of the industry depends on the exports.

Exports of footwear and leather products  

Footwear sector which showed a growth from year 2004-2007 was severely affected by the global recession in year 2008 and 2009.   

However the export figures of 2011 (January - August) shows a five per cent increase of exports of footwear and 36% increase in the leather products, compared to the same period of year 2010.  

The import of school shoes is almost negligible as the local companies are able to cater to this market. Sri Lanka’s major market for footwear is EU while major markets for leather products are USA and Germany

Encourage the potential manufacturers to export

To strengthen the local manufacturers to face the challenges of the international market, EDB organised several technical exposure/productivity improvement programmes in China, world’s largest manufacturer and exporter of footwear.

Further the manufacturers are offered assistance by way of facilitating them to participate in international trade fairs to promote their products.  

Most of the raw material components and Accessories for the industry are imported duty free and out sourced from India, China and Thailand. Developing the supporting industries such as components and accessories locally will also have a good impact on the competitiveness of Sri Lankan produ