- $ 91 m drop in apparel export sales
The Joint Apparel Association Forum (JAAF) yesterday (4) called on the Government to accelerate market access measures and consider an electricity tariff relief for export industries in the wake of merchandise exports decreasing by 8.98% in January this year, compared to January 2022.
According to the Export Development Board (EDB), Sri Lanka’s merchandise exports decreased by 8.89% ($ 1.001 billion) in January 2023, compared to 2022.
The apparel and textile sector alone has seen a negative growth of -17.7% for merchandise exports, which is a drop from $ 514 million to $ 423 million by January 2023.
According to JAAF Deputy Chairperson Felix Fernando, the dip in exports did not come as a surprise.
“This did not come as a surprise. We were expecting that to happen; for the first six months of 2022 there weren’t many orders, mainly due to the global recession and reduced trade in the US and EU markets,” Fernando explained.
He stated that post-Covid stockpiling by traditional markets and slow market momentum had also added to the reduction in orders for local apparel.
When asked what could be done to assist the export industries, particularly the award-winning apparel sector to improve exports, Fernando called on the Government to improve market access for exports.
He also called for the Government to move expeditiously to secure the at-risk GSP Plus trade concessions, which greatly aid Sri Lankan apparel exports to maintain competitiveness in key EU markets.
In particular, Fernando requested the Government to expedite the ongoing dialogue with India to increase market access.
According to him, the current trade agreements allow Sri Lanka to export eight million items of apparels to India, whereas Bangladesh and other nations have negotiated better terms.
Fernando pointed out that with only eight million items, the scope of exports to India was significantly limited.
Further, Fernando said that Sri Lanka should consider a relief mechanism for export industries in relation to the recent electricity price tariff hike.
“We understand that everyone has to pay more, but this scale of payment for industry may cripple us soon,” he opined.
Attempts by The Sunday Morning to contact the Minister of Trade and the EDB Chairman regarding the drop in export earnings and any solutions that were being considered failed.