Sri Lanka’s apparel industry is set to gain greater supply-chain resilience and export competitiveness with the opening of a US$20.4 million specialty chemicals manufacturing facility by Asahi Dyes and Chemicals SL (Pvt) Ltd at the Biyagama Export Processing Zone.
The facility, established through a partnership between Japan’s Asahi Dyes and Chemicals Co., Ltd. and Sri Lanka’s Asons Ltd., will create 281 direct employment opportunities while bringing advanced Japanese manufacturing technology and international production standards to Sri Lanka.
Board of Investment (BOI) Chairman Duminda Hulangamuwa said the investment would help strengthen the vertical integration of the country’s apparel industry, which has developed into a sophisticated, technology-driven sector over the past several decades. He stressed the importance of further developing the local supply chain while continuing efforts to diversify Sri Lanka’s export base into high-value manufacturing and other emerging sectors.
Clothing
The Biyagama facility will manufacture textile dyes, printing chemicals and finishing chemicals used by the textile and apparel industry, with production targeting export markets across Asia and Southeast Asia. Founded in 1932, Asahi Dyes and Chemicals has established an international presence in specialty chemicals, with expertise in sulfur chemistry, pharmaceutical intermediates, electronic chemicals and high-performance textile dyes. The company operates in Japan, China and Vietnam.
The Sri Lankan operation is also linked to Italy’s Tonello, a global technology company specialising in garment washing, dyeing, finishing and sustainable textile processing solutions. The partnership is expected to facilitate technology transfer and international knowledge exchange. Sustainability has been incorporated into the facility’s design and operations, which comply with LEED v4 BD+C green building standards and include water conservation, energy optimisation, advanced wastewater treatment and carbon-emission reduction measures.
The investment is expected to reduce the apparel sector’s dependence on imported chemical inputs, improve supply-chain efficiency, develop skilled employment and enhance the competitiveness of Sri Lanka’s export manufacturing sector. The project also supports the BOI’s strategy of attracting technology-intensive, environmentally sustainable and export-oriented investments to strengthen Sri Lanka’s position as a high-value manufacturing hub in South Asia.
Source: https://dailynews.lk/2026/08/11/business/1032938/us-20-4-m-asahi-dyes-plant-strengthens-apparel-supply-chain/
