National Handicrafts Authority to be established by 2027

The Government plans to establish a new National Handicrafts Authority by 2027 through the merger of the Department of Textile Industries, the National Crafts Council, the National Design Centre, and Laksala, according to discussions at the Committee on Public Accounts (COPA).
The proposed authority is expected to transform Sri Lanka’s traditional textile and handicrafts sector into a competitive industry by integrating modern fashion, design, and technology while targeting international markets.
The matter was reviewed when COPA met recently in Parliament under the chairmanship of MP Kabir Hashim, examining Auditor General’s reports covering 2021–2023 and 2024, as well as the Department’s current performance and restructuring programme.
Officials informed the Committee that the Government intends to position the textile industry both as a vital part of Sri Lanka’s cultural heritage and as an economically viable sector aligned with evolving market demands. Efforts are also underway to attract more youth into the industry by expanding higher education and technical training opportunities through the Sri Lanka Institute of Textile and Apparel (SLITA).
COPA discussions highlighted challenges including human resource shortages, suspended recruitment of textile instructors, and underutilization of machinery purchased during the COVID‑19 pandemic. Concerns were also raised about the limited use of facilities at the Katubedda Training Centre and the failure to generate income from the Department’s tourist bungalows.
Between 2021 and 2025, 720 students enrolled in Department training courses, but only 456 completed them, reflecting a dropout rate of over 40%. In some cases, Government expenditure per trainee ranged from Rs. 700,000 to Rs. 1.1 million.
The Committee stressed that the textile industry must evolve into a competitive sector that preserves heritage while embracing modern technology and international opportunities.
It emphasized the importance of implementing the restructuring programme within the stipulated timeframe and ensuring efficient use of public resources. (Newswire)
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