UK-based clothing firm Claudia International Limited is setting up a garment manufacturing plant in Sri Lanka to make ladies' fashion blouses and skirts for export to Europe.

The project has been signed off by the country's Board of Investment, which says the $1m factory in Boralesgamuwa will provide jobs for over 500 workers. 

Mr Michael Moniatis, chairman of Claudia International, says one of his goals is to improve design capabilities in Sri Lanka to help secure orders from leading European buyers.

The factory is expected to be fully operational within the next six months.