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Govt. supports apparel exports  

21 Mar 2021

Taking into consideration the major role the local apparel exporters play in Sri Lanka's economy, the Government is set to help them reach this year's target. During a meeting on 15 March, industry stakeholders were assured the fullest support to enhance its productivity and quality by President Gotabaya Rajapaksa.  The textile and garment industry is the most significant and dynamic contributor to Sri Lanka’s economy, accounting for nearly 45% of exports.   However, following the outbreak of the Covid-19 pandemic, the sector's exports declined by 21% to $ 4.4 billion after posting a 5.1% growth in 2019 from 2018, despite having a forecasted growth of 6% for 2020 prior to the outbreak. This decline is further highlighted in Central Bank data, which showcased that the apparel exports in January 2021 declined by 11% to $ 423 million from a year earlier.   The decline in exports is due to the impact the virus had on both the global and local communities, as it led to partial or full shutdowns. Local apparel manufacturers were also faced with added restrictions during the second outbreak of Covid within the island, which took place in October 2020, adding even more restrictions to their operations.  However, the pandemic has also opened the industry to new opportunities, as Export Development Board (EDB) data stated that the industry had experienced an export rise of 47.42% to $ 876.44 million, when it came to personal protective equipment (PPE)-related products in 2020.  This year, the Government announced that they expected the export target for the apparel sector to be an income of $ 5.1 billion.   During the recent meeting with the stakeholders, the President stated that he was aware of the challenges faced by the local apparel industry, and stated that they will follow a well-planned strategy to reach the target for this year. He went on to explain that a large sum of foreign exchange could be earned by reviving the local apparel industry.  During the discussion, representatives of the Joint Apparel Association Forum (JAAF) stated that they are committed to achieving these goals, but pointed out the challenges placed before them in the industry due to health guidelines imposed during the Covid-19 pandemic  Speaking to The Sunday Morning, Hirdaramani Group Director and JAAF member Aroon Hirdaramani stated that during the discussion, a proposition was made to look into the possibility of relaxing certain health guidelines imposed on the garment sector without affecting the public health condition of the country. He explained that the President had given them the relevant contacts in the Ministry of Health (MoH), so that they could speak to the Ministry in order to facilitate the PCR testing and antigen testing.  “Right now, the support we are getting from the Government is mostly focused on the vaccinations and the health protocols. The President gave us the relevant contacts from the MoH, and now each of our departments have also been given those contacts to help expedite the testing.” As for the vaccination of the factory workers, Hirdaramani stated that the Government has a plan to vaccinate the Colombo and Gampaha Districts, and the sector will follow through with this plan.  Vaccinating apparel factory workers was first highlighted during a webinar held on 2 February by the Institute of Policy Studies of Sri Lanka (IPS), where JAAF Chairman A. Sukumaran proposed the vaccination of all 350,000 apparel industry employees, in order to compete with the international export industry.  Furthermore, during last week's meeting, extension of the visa validity period for the potential investors and adopting a relaxed policy in issuing visas were discussed. President Rajapaksa also paid attention to the shortage of human resources in the industry and stressed that generating quality and secure employment opportunities could conveniently attract youths to the sector.    (This article is done in collaboration with the Media Centre for National Development.)   


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