For an island with a rich history and a heritage of 2,500 years in the handloom industry, Sri Lanka’s current scenario resembles the saying, ‘You never miss the water till the well runs dry’.
Handloom refers to various looms or weaving devices operated wholly or partly by hand or foot power. A significant amount of time, effort, and manpower is infused into the looms to produce handloom products. The process itself highlights the inherent value of these products.
The handloom industry holds immense potential, from creating jobs and innovative products to capturing international markets. However, despite this potential, no clear national vision or coordination exists to align all the factors driving the industry.
Consequently, the private sector struggles to thrive without adequate support, an issue that needs to be urgently addressed.
Government stance
The Sunday Morning Business spoke to Ministry of Industries Secretary Shantha Weerasinghe about the challenges faced by the handloom industry.
Addressing the many issues related to accessing raw materials, Weerasinghe said: “We proposed a new project and allocated $ 100 million, collaborating with Lanka Salusala Ltd. to procure raw materials, which we can then distribute among our entrepreneurs in the handloom industry.”
Previously, there was no Government intervention, but now, providing raw materials could help make handloom production more cost-effective and lower overall production costs, he noted. He further added that without this support, entrepreneurs often had to source materials from intermediaries, a process that interfered with their performance.
Small and Medium-sized Enterprises (SMEs) contribute 52% to the Gross Domestic Product (GDP), and according to Weerasinghe, the ministry is focused on supporting these enterprises in the country, including handloom SMEs. He said the Government had decided to establish a new institute targeting the development of Micro, Small, and Medium-sized Enterprises (MSMEs) in Sri Lanka.
“We are also collaborating with the Ministry of Finance to introduce investment loans and address non-performing loans for SMEs as well,” he said.
In addition, Weerasinghe noted that the policies related to Sri Lanka’s handloom industry were ineffective in promoting the industry. He said that the Government needed to rethink these policies, amend them, and introduce new processes and guidelines for the industry.
A task force whose purpose was to promote, support, and facilitate the handloom industry and solve issues within the industry had been established, but it had not performed to expectations, he further noted.
“We need a monitoring and evaluation system; otherwise, we can’t assess their performance. We are now trying to work with them to improve their performance,” he said.
Reasons behind expensive handloom
Speaking to The Sunday Morning Business, Selyn Exporters Ltd. Director – Business Development Selyna Peiris clarified why handloom products were expensive and relatively unaffordable.
“The raw material is imported from India, and in just the last 2-3 years, since the Covid-19 pandemic, the prices have increased by 300%. Consequently, we have to pass that increase on to the customer through pricing. This significant increase in prices of raw materials is one major reason for the rise in costs,” she noted.
Moreover, she noted that since the raw materials were not manufactured in Sri Lanka, additional costs were involved, including increased freight charges, rising dye expenses, and the depreciation of the dollar.
Peiris observed that another issue contributing to the cost increase was the lack of scale, which refers to the level of production or operation of a business or industry.
“Efficient production and cost reduction require a certain scale, which we currently lack. With a small retail market and numerous players, saturation is evident, driving up product prices and making them less competitive compared to imported goods,” she said.
Persistent handloom demand
“There’s always a local demand, especially during seasonal periods like Avurudu, and there are customers who are loyal to cotton and high-quality products. We have many repeat customers who we cater to as well,” Peiris pointed out.
She also said that internationally, some young designers had made efforts to take Sri Lankan handloom to a global level. However, she cautioned that breaking into the fashion industry required significant investment, making it impractical for small designers or SMEs.
Despite such pilot projects with international partners being initiated by Selyn Exporters Ltd., she noted that they were unable to continue because scaling up and maintaining a continuous presence in the export market posed challenges that many SMEs and small designers could not overcome.
Peiris highlighted the main issue, which was that the Sri Lankan craft industry, including the handloom sector, was heavily subsidised by the State. She noted that there were very few private sector players, mostly in the medium-scale handloom and small-scale batik sectors, while the rest operated at a micro level.
“One of the best approaches for the handloom industry is to build a value chain with the apparel sector to explore how our textiles can complement the larger apparel industry,” she added, noting that if Sri Lanka’s apparel sector was catering to some of the world’s largest fashion brands, there should be a niche for the Sri Lankan handloom textile industry to fill and that this could be the way forward.
Policy framework in place
The National Crafts Council and Allied Institutions Act established the National Crafts Council, the Sri Lanka Handicrafts Board, and the National Design Centre (NDC) for the promotion, development, and fostering of handicrafts, including handlooms.
“The key problem lies in the lack of implementation of existing policies, not the need to reinvent them,” Peiris said, noting that although the policy framework was in place, the issue lay in the failure to execute it because of the lack of vision or coordination to drive these institutions in order to elevate the handloom industry to the next level.
This lack of coordination stemmed from the absence of a national vision for the handloom industry, also known as artisanal textiles, Peiris asserted. She added that a quick search on the internet for artisanal textiles revealed their potential in the global market, especially in the fashion and interior industries. With the right branding, emphasising ethics and sustainability, these textiles could easily penetrate international markets, she noted.
“We don’t need the Government to do our job; we need it to step aside and remove obstacles. There is a market, but we need to focus on reaching it efficiently,” Peiris concluded.
Lack of skilled workers
Meanwhile, speaking to The Sunday Morning Business, Ko Lanka Pure Silk Ltd. Owner Dr. Binuj Ubeyarathne highlighted the lack of support faced by SMEs in the handloom sector.
“Many of these small handloom factories or family-run businesses had to shut down due to loan repayments becoming unmanageable during the financial crisis. Additionally, there’s a shortage of weavers as experienced craftsmen retire from the industry, leading to a lack of skilled labour. This has resulted in a significant decrease in production capacity, with many businesses operating at only a fraction of their previous capacity,” he elaborated.
According to Dr. Ubeyarathne, the primary raw material, cotton yarn, is imported from India, and the cost of high-quality cotton yarn has almost doubled from Rs. 2,800 to Rs. 5,400 per kilogramme. He noted that this substantial increase in raw material costs had led to a rise in overhead expenses and, consequently, the price per metre of fabric.
In addition, handloom weaving is a labour-intensive process, with each handloom capable of producing only 6-8 metres of fabric per day. Dr. Ubeyarathne elaborated that this limited production capacity further increased labour costs and overheads, exacerbating the financial challenges handloom businesses faced.
Untapped potential
Dr. Ubeyarathne highlighted the significant potential for the handloom industry to rebound, especially if the younger generation gained more interest in the sector.
“Handloom products offer a wide variety of designs and innovations, making them appealing to consumers. If people, including designers, strategists, and quality controllers, become more involved in the industry, coupled with increased Government support such as providing interest-free loan capital and establishing training centres, the industry’s potential for growth is substantial,” he said.
With the global shift towards eco-friendly products, he observed that handloom textiles held immense potential as they were inherently sustainable.
While there was previously limited support from the Government, there had been a positive shift in recent times, Dr. Ubeyarathne further pointed out.
“The Ministry of Industries has shown a proactive approach towards the sector, which is encouraging. Continued Government support, especially in the form of policies that facilitate access to finance and skill development, will be crucial for the sustained growth and revival of the handloom industry,” he said.
Lack of design education
Education and business consultant for the design industry and Concept Garage-SL Founder Vajira Peiris highlighted several critical issues plaguing the handloom industry in Sri Lanka when she spoke to The Sunday Morning Business. Peiris pointed out a glaring gap in design education within the country.
“Currently, the University of Moratuwa stands as the sole institution offering a textile pathway at the undergraduate level. However, interest in the handloom sector among graduates is minimal, with only one or two individuals showing any inclination towards it.
“Despite the presence of weaving schools across many regions, they predominantly focus on imparting technical knowledge rather than providing validated and up-to-date design education, perpetuating a cycle of outdated designs,” she elaborated.
Utilising natural resources
Peiris highlighted Sri Lanka’s potential to produce natural dyes using its abundant natural resources, including land and a favourable climate. Citing ‘History of Natural Dyes in Sri Lanka’ by Professor U.G. Samudrika Wijayapala, Peiris underscored the opportunity to enhance handloom production with locally-sourced and sustainable dyes.
Furthermore, she stressed the need for greater involvement of young designers, entrepreneurs, and innovators to inject fresh perspectives and contemporary aesthetics into the industry. She noted that by fostering partnerships with educational institutions and encouraging students studying textile-related disciplines to explore opportunities within the weaving sector, the industry could benefit from new energy and creativity.
Peiris further asserted: “When you talk about the weaving industry, the picture you get is of an old person sitting at a loom, peddling, and weaving. That image has to change.”
Despite the challenges, Peiris highlighted the immense potential of the handloom industry in Sri Lanka, both domestically and internationally. She emphasised the substantial market for handloom products for export and within Sri Lanka, especially among women who regularly wore traditional attire such as saris. She stressed that new avenues for growth and sustainability could be unlocked by harnessing this potential and promoting the industry locally and abroad.