“The Industries and Commerce Ministry has
already informed industrialists to send written requests to be produced
during discussions. ..The prices of cotton yarn showed a marked increase during the past four months. It has increased by 75 percent now. .India
has now banned the export of cotton yarn putting the Sri Lankan textile
industry at great risk of closing down factories. This will result in
over 100,000 job losses to employees involved in the industry. ..Sri
Lanka has been importing cotton yarn from Thailand, Vietnam and India.
The ban in cotton yarn exports has caused a great loss for the companies
that were depending on Indian cotton yarn. However, the majority of the
yarn was from India because the manufacturers preferred to import from
India, as it is the nearest port, low freight charges and the small
order quantities were also accepted by suppliers. ..Earlier, Sri
Lankan President Mahinda Rajapaksa rescued the textile weaving industry
immediately after he came to power by writing-off the debts of
industrialists who were facing financial difficulties. After that the
industry started recovering and showing improvement, with the campaign
of Mawbima Lanka Foundation to improve the local industry by promoting
local products. ”