Colombo, Sri Lanka, January 16, 2014
—IFC, a member of the World Bank Group has partnered with Sri Lanka’s Joint Apparel Association Forum (JAAF) to promote energy conservation in the apparel sector that can reduce operating costs, increase profits, and reduce greenhouse-gas emissions.
A recent investment-grade energy audit of seven apparel factories projected an electricity savings potential of 10 to 50 percent if conservation methods are adopted. Additionally, if all identified energy conservation measures are implemented by the audited factories, carbon dioxide emissions can be reduced by approximately 16 percent annually.
“Simple changes, including the use of energy efficient lights, air conditioners, and equipment will help make all the difference in reducing operating costs,” said Tuli Cooray, JAAF’s Secretary General. “Other measures like improvements to existing equipment will also boost energy efficiency.”
The audit also highlighted the benefits of using renewable energy applications like biomass and rooftop solar systems.
The apparel sector is one of Sri Lanka’s largest foreign exchange earners and biggest industrial employment generators. However energy costs form a significant portion of total operating costs. On average, energy costs could constitute up to 15 percent of a factory’s total operating costs.
“Increases in the cost of electricity and a heavy dependency on imported fuels such as diesel and kerosene directly affect the competitiveness of Sri Lanka’s apparel sector,” said Adam Sack, IFC Country Manager for Sri Lanka and Maldives.
Sri Lanka is a priority country for IFC. A committed portfolio of over $280 million in Sri Lanka covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and health care. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance, and by offering capacity-building and training opportunities.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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