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Retail activity to drop sharply

06 May 2021

  • SLRA says all-island lockdown unlikely

  • In case of lockdown, sector to survive on essential goods sale

By Imsha Iqbal   With the emergence of the third wave locally and the reduction in movement, retail performance in the country is expected to plummet considerably in the next two weeks to come, according to Sri Lanka Retailers’ Association (SLRA).  Speaking to The Morning Business, SLRA Founding Chairman and President Hussain Sadique stated that he firmly believes that the Government would not impose a lockdown, and instead would implement a different strategy to assure the safety of the citizens.  He said: “They (the Government) will permit purchasing” even on the grounds of a lockdown, yet consumption of retail would come down. However, he added that during such grave Covid safety measures, retail performance could possibly survive on essential consumer goods.  Further, he said 2020 was a year of survival, and the retail industry has learnt lessons from earlier waves on surviving the third wave. Unlike the earlier pandemic days, now the online sales also can contribute in minimising the impact of the pandemic even though it is “challenging and unpredictable”, through online shopping sites in Sri Lanka such as Daraz. Thus, Sri Lankan retail can reach the global online market as well.  The industry was growing and by 2023 was expected to continuously grow 20% with the establishment of shopping malls, the Port City project, hotels, and tourism. Also, by 2025, Sri Lanka being a regionally competitive country with quality products and having reasonable prices, the retail industry was expected to thrive. Therefore, Sri Lanka could attract consumers from South-East Asian countries such as Singapore, Malaysia, and Bangkok especially in electronics and the garment sector. However, the pandemic has disrupted the industry.  The retail industry bounced back to a situation similar to the one before the pandemic during the month of April due to the consumer enthusiasm with the Sinhala and Tamil New Year season.  However, the supply was limited due to the importation regulations, said Sadique, speaking to The Sunday Morning Business in April. 


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