The high-value manufacturing and export sector in Sri Lanka received a significant enhancement today with the inauguration of a cutting-edge facility by Asahi Dyes and Chemicals SL (Pvt) Ltd. at the Biyagama Export Processing Zone (BEPZ). This new manufacturing plant represents a foreign direct investment of US$ 20.4 million and is expected to generate 281 direct job opportunities.
The facility was established through a strategic collaboration between Asahi Dyes and Chemicals Co., Ltd. from Japan and Asons Ltd. of Sri Lanka. It aims to introduce advanced manufacturing techniques and internationally recognized production standards, thereby providing a boost to the local industrial landscape.
During the opening ceremony, Duminda Hulangamuwa, Chairman of the Board of Investment (BOI), praised the investment and the dedication involved, expressing his best wishes for the company’s success. He stated, “This facility will enhance the vertical integration of the garment industry. While it is essential to diversify our export base into sectors like electronics and telecommunications, the garment industry remains a critical contributor to our economy. Over the past 30 to 40 years, it has transformed into a sophisticated, high-tech sector. We have made strides in vertical integration concerning fabric and accessories, and we aim to expand our supply-chain capabilities further.”
Founded in 1932, Asahi Dyes and Chemicals Co., Ltd. is recognized globally as a premier manufacturer of specialty chemicals, specializing in sulfur chemistry, pharmaceutical intermediates, electronic chemicals, and high-performance textile dyes. With operations in Japan, China, and Vietnam, the new facility in Sri Lanka marks a significant step in transferring advanced Japanese manufacturing technologies and global quality standards to the nation’s industrial sector.
The Biyagama facility will produce a variety of specialty chemicals, such as textile dyes, printing agents, and finishing chemicals, catering to the textile and apparel industry while serving export markets in Asia and Southeast Asia. This initiative is expected to enhance Sri Lanka’s export portfolio and reinforce regional supply-chain resilience.
A notable aspect of this operation is its partnership with Tonello of Italy, a prominent technology firm specializing in garment washing, dyeing, finishing, and sustainable textile processing. This collaboration connects the Sri Lankan facility to a vast international network of technological innovation and responsible manufacturing practices, facilitating continuous global knowledge sharing.
Sustainability is a core principle of the new facility, designed to meet the LEED v4 BD+C (New Construction) green building standards. Its operations prioritize water conservation, energy efficiency, advanced wastewater treatment, carbon emission reduction, and environmentally responsible production systems in line with ESG principles, complementing Tonello’s own commitment to efficient and sustainable manufacturing.
This investment is anticipated to provide significant long-term benefits for Sri Lanka’s textile and apparel sector by localizing the production of internationally certified specialty chemicals, decreasing reliance on imported materials, enhancing supply-chain efficiency, and boosting export competitiveness. Furthermore, it will facilitate technology transfer and contribute to the development of skilled Sri Lankan professionals through exposure to advanced Japanese manufacturing methodologies.
The investment aligns closely with the strategic objectives of the Board of Investment of Sri Lanka (BOI) to attract high-tech, environmentally sustainable, and export-oriented investments that create lasting economic value, strengthen the industrial base, and position the country as a competitive manufacturing hub in South Asia.
Asahi Dyes and Chemicals SL is more than just a foreign investment; it symbolizes the integration of Japanese technological expertise, Italian innovation, and Sri Lankan industrial capabilities, establishing a foundation for sustainable growth, advanced manufacturing, and international competitiveness. This endeavor reinforces Sri Lanka’s ambition to emerge as a leading destination for high-value foreign direct investment in Asia.
