By Uwin Lugoda
Electronics retailers across Sri Lanka have sufficient stocks to last the next few months despite the prevailing import restrictions, according to industry insiders.
According to Sri Lanka Retailers’ Association (SLRA) Chairman Hussain Sadique, the current impact on electronics stocks due to import restrictions is minimal, as most retailers house alternative products for consumers to choose from.
Speaking to The Sunday Morning Business, he explained that if consumers were to look for products such as refrigerators and TVs, they will have a wide variety of brands and models to choose from. “Therefore in the short term, electronic retailers are okay,” he said.
However, Sadique stated that if the import restrictions were to go beyond the next three months, many electronic retailers will face challenges when it comes to inventory.
“We need a short-term solution; otherwise, we will lose the market and face so many other logistical challenges. Right now, if there are urgent requirements for things like raw materials or products, these retailers can apply for a special approval, but the process is long. They need to bring in a simplified process, or engage with the stakeholders of each sector and work out a proper six-month plan.”
Softlogic Holdings, a diversified conglomerate and major player in the electronic retail space in Sri Lanka, added to this, stating that right now they have stocks, but it is unpredictable how the situation would be in a few months if the import restrictions are not lifted.
“Products like laptops and smartphones, which are exempt from the restrictions, and others that fall under the same category are okay; so are the other product lines. However, we have to wait and see how the situation pans out,” said an official from Softlogic.
They explained that their inventory would last a few more months depending on demand. They stated that some product lines with less demand will be able to manage, while the ones in high demand will face a challenge without inventory.
“If there is a sudden surge in demand in a line of items, then obviously we will be faced with a challenge, compared to other products, because we cannot replenish our stocks.”
The official explained that they have seen high demand for products such as laptops and mobiles during and after the lockdown, due to many people working from home and children schooling from home. Apart from these, they stated that other items like TVs and refrigerators also saw a spike in sales post-lockdown, due to breakage during the two-and-a-half month period.
The official stated that they are hoping the restrictions will be lifted soon, so that they can start importing again, as in six months, almost all the retailers will be out of inventory; it is difficult to operate their showrooms without products, they shared.
Sri Lanka first put restrictions on non-essential imports on 18 March, by order of the Central Bank, with a view to ease the pressure on the exchange rate and stress on financial markets as a result of the impact of the Covid-19 outbreak. The Government later reinforced the restrictions on 1 April, with the exception of fuel and medicine, and subsequently exempted raw materials needed for export purposes. Following this, on 15 April, the Government also announced import restrictions on items such as rice, flour, sugar, liquor, and apparel products as the country was facing a foreign exchange crisis, extending restrictions to 15 July. These restrictions have now been extended until further notice. Electronics stocks sufficient to last months despite import controls
18 Jul 2020
Electronics stocks sufficient to last months despite import controls
18 Jul 2020
By Uwin Lugoda
Electronics retailers across Sri Lanka have sufficient stocks to last the next few months despite the prevailing import restrictions, according to industry insiders.
According to Sri Lanka Retailers’ Association (SLRA) Chairman Hussain Sadique, the current impact on electronics stocks due to import restrictions is minimal, as most retailers house alternative products for consumers to choose from.
Speaking to The Sunday Morning Business, he explained that if consumers were to look for products such as refrigerators and TVs, they will have a wide variety of brands and models to choose from. “Therefore in the short term, electronic retailers are okay,” he said.
However, Sadique stated that if the import restrictions were to go beyond the next three months, many electronic retailers will face challenges when it comes to inventory.
“We need a short-term solution; otherwise, we will lose the market and face so many other logistical challenges. Right now, if there are urgent requirements for things like raw materials or products, these retailers can apply for a special approval, but the process is long. They need to bring in a simplified process, or engage with the stakeholders of each sector and work out a proper six-month plan.”
Softlogic Holdings, a diversified conglomerate and major player in the electronic retail space in Sri Lanka, added to this, stating that right now they have stocks, but it is unpredictable how the situation would be in a few months if the import restrictions are not lifted.
“Products like laptops and smartphones, which are exempt from the restrictions, and others that fall under the same category are okay; so are the other product lines. However, we have to wait and see how the situation pans out,” said an official from Softlogic.
They explained that their inventory would last a few more months depending on demand. They stated that some product lines with less demand will be able to manage, while the ones in high demand will face a challenge without inventory.
“If there is a sudden surge in demand in a line of items, then obviously we will be faced with a challenge, compared to other products, because we cannot replenish our stocks.”
The official explained that they have seen high demand for products such as laptops and mobiles during and after the lockdown, due to many people working from home and children schooling from home. Apart from these, they stated that other items like TVs and refrigerators also saw a spike in sales post-lockdown, due to breakage during the two-and-a-half month period.
The official stated that they are hoping the restrictions will be lifted soon, so that they can start importing again, as in six months, almost all the retailers will be out of inventory; it is difficult to operate their showrooms without products, they shared.
Sri Lanka first put restrictions on non-essential imports on 18 March, by order of the Central Bank, with a view to ease the pressure on the exchange rate and stress on financial markets as a result of the impact of the Covid-19 outbreak. The Government later reinforced the restrictions on 1 April, with the exception of fuel and medicine, and subsequently exempted raw materials needed for export purposes. Following this, on 15 April, the Government also announced import restrictions on items such as rice, flour, sugar, liquor, and apparel products as the country was facing a foreign exchange crisis, extending restrictions to 15 July. These restrictions have now been extended until further notice. Kapruka
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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!