Firefox moves from Sri Lanka to Bangladesh

Firefox Lanka (Pvt) Ltd, a unit of Taiwan-based bicycle company is shifting its operations from Sri Lanka to Bangladesh, a top official from the company said on the grounds of anonymity.

According to the source, the decision by the management in Taiwan to shift operations to Bangladesh was taken about two years back and the management had been gradually working towards the closure of the factory. “No production is currently taking place at the factory,” the source noted.

Bike Europe, a leading website for bike professionals worldwide quoting unnamed sources recently said that Firefox Lanka is shifting operations to Bangladesh as a result of Sri Lanka losing its preferential entry to the EU markets in August 2010 through GSP+.

However the source rejected this claim and stressed that loss of GSP+ had nothing to do with the closure of Sri Lankan operations. Firefox received tax concessions from Sri Lanka’s Board of Investment (BoI) when it set up the factory in Ja Ela in 2006.

Moreover, the European Union is conducting an anticircumvention investigation into imports of bicycles from Sri Lanka, Malaysia, Indonesia, and Tunisia.

Meanwhile, Bangladesh retains its 0% import duty and remains attractive for investors targeting the EU market.