Despite global market volatility that is prevalent for the longest time, affecting Sri Lanka’s revenue generation amidst its economic crisis, apparel exports has also faced the wrath of policies such as para tariffs hindering its competitiveness, The Daily Morning Business learnt.   

Speaking to The Daily Morning Business, Consultant for Joint Apparel Association Forum (JAAF) Sri Lanka Yohan Lawrence said: “These (paratariff for apparel material imports) are hindrances for trade making Sri Lanka more expensive than it should be.” 

He added that Sri Lanka needs to be more competitive as a destination for investment and the major part of such investment is the Ease of Doing Business.

“Trade facilitation where you could come in and trade quickly and where you have low cost in transaction and a single window for operation,” said JAAF Consultant though these have been in conversation for years such has not been implemented yet. 

Speaking to The Daily Morning in March, Lawrence pointed out that the island’s apparel industry faces further pricing pressure due to the fact such as strengthening if the Sri Lankan Rupee (LKR) and it is mandatory to foreign exchange conversion yet by the exporters 

“This takes away any flexibility that the exporter had in terms of timing and rates of conversion having a direct impact on the profitability of the exporter and will be a particular concern for apparel exporters in the SME sector,” he elaborated. 

According to the Central Bank of Sri Lanka (CBSL), in February 2024, the apparel export revenue value has declined due to excess supply relative to the global demand.

At the same time, the apparel export revenue during the same month has declined year-on-year by 2.06%, states the CBSL.

Stressing the predicament of the apparel exports in Sri Lanka, Lawrence noted that overall the first couple of months in 2022 were down about 3%  from 2023 and it is still at around 20% less than 2022 which was one of their best years.