The bulk of leather products made in Sri Lanka are made of imported leather. However, in recent years several local leather production units have been set up in the country. There are around 11 tanneries producing 25 tons of leather per day. Most of the large companies have their own tanneries. As the supply of locally tanned and finished leather is not sufficient to meet the requirements of the export industry, the government has allowed the duty-free import of raw material to facilitate the industry.
In the case of outsoles, Sri Lanka has the advantage of having an adequate supply of good quality rubber including sole crepe of which Sri Lanka is the only producer. Several factories have the facility to produce moulded rubber soles. There are also a couple of factories equipped to manufacture TPR and PVC unit soles, while a few companies have also started to manufacture lasts and heels.