North gets first int’l investment of US$ 20 m

Saturday, 6 August 2011 01:56 - - {{hitsCtrl.values.hits}}

Sri Lanka’s war-ravaged north is getting its first international investment with the arrival of Omega Line, an apparel factory, with an investment of US$ 20 million and expected employment for 1,500 people. The factory is scheduled to open in October 2012.

A statement released by the Industry and Commerce Ministry stated that the ceremony to begin the construction of the new garment factory in Vinayagapuram, Vavuniya was held on 29 July.

The garment manufacturing factory is a venture by Omega Line Limited, which is 100% owned by Calzedonia Finanziaria of Luxembourg. Calzedonia’s Vavuniya factory is expected to commence operations in October 2012 and will provide employment to 1,500 at full capacity. The initial investment for the Vavuniya factory is US$ 20 million.

Omega Line started operations in 1999 in Sri Lanka with 30 employees in Sandalankawa. Calzedonia has other manufacturing operations in Croatia, Serbia, and even Bulgaria. Calzedonia’s Sri Lanka operations see annual export value of over $ 300 million to Italy alone. It now employs over 3,000 workers to manufacture lingerie.

The total investment made to date is approximately US$ 45 million on two state-of-the-art factories with a total area of 265,000 sq.ft. on an extent of over 25 acres. Omega Line exports its products to Europe under the brand names of ‘Intimissimi’ and ‘Tezenis’ while its beachwear and swimwear are under the brand name of ‘Calzedonia’.

Industry and Commerce Minister Rishad Bathiudeen had commended the organisation on its decision to invest in the north and it is the first of as many as nine companies that have applied for Board of Investment (BOI) approval to set up in the area. Sri Lanka’s other large scale apparel companies including Brandix, Mas, Orit Lanka and Timex Fergasam are also reported to be heading to the region in the near future.

“Sri Lanka has established itself as a reliable supplier of quality garments at competitive prices and upholds ethical practices, backed by legislation. The country is thus being identified as a producer of ‘Garments without Guilt,’ which epitomises the synergy between ethical brands and apparel ‘Made in Sri Lanka’. These ethical sourcing and sustainable development practices aim at empowering women and supporting their communities through poverty alleviation and also offering opportunities for good education and personal growth,” he said.