Business

‘Free Trade Agreements essential to enhancing Sri Lankan apparel’s resilience’

Published

4 years ago

2022/10/22

Apparel sector in urgent discussions with government on FTAs to boost exports

With fears of a global economic recession looming, the Joint Apparel Association Forum (JAAF) is actively stepping up engagement with top Government and Foreign Ministry officials to expedite negotiations on Free Trade Agreements (FTAs) to help boost exports and strengthen the industry’s resilience.Elaborating on the progress thus far, Deputy Chairman of JAAF and Chief Executive Officer and Managing Director of Omega Line Felix Fernando outlined key priorities for the industry moving forward. Following are excerpts:

Q: What progress has been made in engaging with the Government to address challenges faced by the apparel sector?

A: There has been strong progress made and we are appreciative that the Government has given weight to our concerns. Most recently, we had separate meetings with the Secretary to the President, the Prime Minister and President. During these meetings, we voiced our concerns over the various challenges faced by the industry resulting from both local and global volatility.

In fact, even in August, we saw a 20% increase in turnover generated by the sector. If this trend continues, we anticipate apparel sector earnings to increase to approximately USD 5.6 billion by the end of 2022. However, it is difficult to anticipate industry performance moving into 2023, given the geo-political tensions and economic volatility created by the situation in Europe – which is home to many of Sri Lanka’s most valuable markets. Currently, the US, EU and the UK comprise about 86% of our total exports.In such a challenging environment, it is essential for Sri Lankan apparel entities to diversify their markets. Hence a central focus for our discussions with Government has been the urgent need to finalize FTAs with countries like China, India, Japan and Australia.

,JAAF was pleased to note that the Secretary to the Prime Minister has been appointed to head a task force to expedite the Chinese FTA, and we are already seeing promising signs of progress. We are also pleased to note that JAAF has already been called in for these discussions although they remain at a preliminary stage at present.

Q: What role will economic reforms play in the apparel sector’s ongoing revival?

A: Fundamental reform in economic policy is absolutely critical. Sri Lanka is a small country with 22 million people, which means we simply cannot generate the economies of scale necessary to directly produce everything we require within a closed economy – especially if we hope to continue having access to quality and reasonably priced goods. Therefore we have to focus on export development in order to fund imports of commodities and goods imperative to keep our economy moving. Fortunately, the Government and the industry are in complete agreement on this point.

We also have must remember that at present, Sri Lanka is not competing on a level playing field. Our main competitors, countries like Bangladesh, Vietnam, and some African nations have duty concessions in global markets, which we do not have. Sri Lanka’s only concessions are for the UK and the EU markets, and those come coupled with a variety of strict conditions pertaining to the origin of raw materials which means that utilisation of these preferences remain around 50% for apparel.

Securing new FTAs can help reduce barriers for Sri Lankan apparel exporters to diversify, hence the Chinese FTA is our first priority. We hope to gain clarity on a timeline for these negotiations from the Department of Commerce in the coming weeks, but further progress will also depend on our sovereign debt restructuring negotiations with China. Further trade concessions will help to better integrate Sri Lanka with regional markets. If for example we are able to penetrate the Indian market, even 10% would be equivalent to 100 million people, where we are presently limited to supplying just 8 million pieces. JAAF has reiterated its request to have this quota increased. There’s also opportunities to lobby for the including of apparel into the new round of Canada’s GPT+ scheme. To move forward on such opportunities, we definitely require the support of the Government and diplomatic corps.

Q: How have import restrictions impacted the apparel industry- especially in terms of the raw materials needed?

A: As the sector was permitted to use its foreign remittances for the purpose of payment for imported raw materials, for the most part, the industry was able to meet its requirements without an issue. The export figures for recent months bear testament to the industry’s ability to deliver during this difficult period.. However, the crisis also meant a significant tightening of financing and this has been particularly challenging for the SME sector as they operate on small margins, and mainly provide support services to the main exporters. This is a sector which provides livelihoods for approximately 40,000 people, hence it is critical that we support them.

In many instances, they lack the working capital and foreign currency needed to purchase machinery and spare parts in order to expand capacity to service larger orders. Despite all the struggles faced, SMEs are still surviving for now, but without formal programmes to support them, this may not last. Most SMEs depend on the larger exporters and manufacturers. Once their orders are cut down, SME orders also decline. With the higher cost of living in Sri Lanka, salaries have also been adjusted across the apparel industry, but with orders declining, employees may see a reduction in earnings, impacted by the decrease of production incentives and overtime. This will affect employees’ monthly earnings and we need to be conscious of the cascading potential social impacts this could have, as their buying power is also weakened.

Q: How would an economic downturn impact orders from the US and EU moving forward?

A: Both markets last year recorded strong sales. But they may have overestimated demand as most buyers’ inventories are still full. Thus, they don’t want to restock for at least another 4 to 6 months.Recently, the US increased its lending rates by 0.75%, and there is a possibility that certain commodity prices might decline. If that happens, this whole situation can change, but it’s still too early to predict. Logistics and energy costs increased exponentially not just in the US but also in the EU, primarily due to the Ukraine war. If these issues ease by December, orders may pick up. But this is a global issue and not unique to Sri Lanka. Although the first 8 months of the year had a growth in exports, we envisage a decline in our apparel exports by 25-30% for the remainder of 2022.

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Business

Asia-Pacific business leaders to accelerate sustainable business action

Published

17 hours ago

2026/08/27

Sahan Weerasooriya

More than 200 senior business leaders, policymakers, investors, sustainability practitioners and United Nations representatives convened in Colombo on 11–12 August for Forward Faster Now | APAC 2026: Driving Business Leadership for Sustainable and Inclusive Growth—the United Nations Global Compact’s flagship regional forum in Asia-Pacific.

Hosted by UN Global Compact Network Sri Lanka and organized by the UN Global Compact APAC Hub in collaboration with 14 Global Compact Country Networks, the forum strengthened regional collaboration and demonstrated the growing role of business leadership in advancing sustainable and inclusive growth across Asia-Pacific.

More than 80 high-level speakers from across the region contributed to the two-day programme, bringing together expertise from business, finance, government, the United Nations and civil society. The forum also convened an exceptional audience of CEOs, C-Suite, Board Directors, Heads of UN agencies and senior decision-makers, creating one of the region’s most significant platforms for cross-sector dialogue on sustainable business.

Across plenary dialogues, leadership panels and action-oriented workshops, participants explored the issues shaping the future of business in Asia-Pacific, including climate action, sustainable finance, gender equality, resilient supply chains, water stewardship, governance and integrity, digital innovation, human rights due diligence, circular economy solutions and ESG data for decision-making. Rather than focusing solely on ambition, Forward Faster Now challenged businesses to move from broad sustainability goals to target setting, practical decisions, stronger systems and action that can deliver progress at scale.

A defining milestone of the forum was the visit of Sanda Ojiambo, Assistant Secretary-General, CEO and Executive Director of the UN Global Compact. Her presence in Sri Lanka underscored the country’s growing role within the regional sustainability agenda and reinforced the importance of private sector leadership in delivering the Sustainable Development Goals.

Beyond the public programme, her visit included a series of bilateral engagements and strategic convenings with business and institutional leaders, deepening relationships and opening new avenues for engagement between the UN Global Compact and stakeholders in Sri Lanka.

The event also marked the launch of three significant initiatives by UN Global Compact Network Sri Lanka that will extend the impact of the convening well beyond the event itself. The Responsible Business Coalition was introduced as a new partnership to embed sustainability, and strengthen governance by bringing together Sri Lanka’s leading professional and industry associations to embed the Ten Principles of the UN Global Compact into their existing convening, training and thought-leadership channels, moving responsible business from a standalone function to a shared C-Suite and Board responsibility.

Business

Sri Lanka Insurance Corporation General celebrates ‘One Team, One Vision’ sales excellence at Annual Awards 2025

Published

17 hours ago

2026/08/27

Sahan Weerasooriya

The Sri Lanka Insurance Corporation General Ltd. (SLICGL) team gathered to honour its top-performing sales professionals at the Annual Sales Awards 2025, held under the theme ‘One Team, One Vision’ on 20th August at the Monarch Imperial.

The evening convened sales leaders and high achievers throughout the island to celebrate a year of sustained performance, customer trust, and commitment which has kept SLICGL at the forefront of Sri Lanka’s general insurance sector.

Affirming SLICGL’s appreciation for the people driving success on the ground, the Sales Awards 2025 recognised those who went beyond targets, deepened client relationships, and contributed directly to the company’s continued expansion.

The event drew an unprecedented audience of over 700 participants. This year’s celebrations recognised a record number of winners, more than double the achievements honoured last year covering a diverse range of award categories reflecting excellence at every level of the business.

Nusith Kumaratunga, Chairman, Sri Lanka Insurance Corporation graced the event as the Chief Guest together with the Board of Directors and senior management of SLICGL also present as invited guests, encouraging and commending the winners for their outstanding achievements.

The award winners at this year’s ceremony included Insurance Advisors, Marketing Executives, Branch Managers, Regional Managers, and members of the Head Office Sales Channels, who were recognised and celebrated for their outstanding achievements in multiple categories.

Business

Sri Lanka to host SEARIC Summit 2026 for the first time, welcoming over 500 youth leaders from across South East Asia

Published

17 hours ago

2026/08/27

Sahan Weerasooriya

(Left to Right: District Rotaract Representative of Sri Lanka and Maldives - PHF Rtn. Rtr. PP Dr. Jude Lucian, Chief Executive Officer of Destination Management Sector at John Keells Holdings PLC – Nalaka Amaratunga, SEARIC Summit Sri Lanka 2026 Chair – PDRR Akhila Wijetunga, Rotary District 3220 Governor of Sri Lanka and Maldives - Rtn. Kumar Sundararaj)

Sri Lanka is set to host the SEARIC Summit 2026 from 11 to 13 September 2026 at the Pegasus Reef Hotel, marking the first time the country will host the flagship regional gathering of the South East Asia Rotaract Information Centre (SEARIC).

Hosted by Rotaract in Rotary International District 3220 (RID 3220) – Sri Lanka & Maldives, the three-day summit is expected to bring together more than 500 delegates from six countries, creating a regional platform for leadership development, knowledge exchange, cultural understanding and collaboration among young leaders. The South-East Asia Rotaract Information Centre (SEARIC) serves as a regional platform connecting Rotaract districts across South East Asia. It facilitates collaboration, information exchange, cultural understanding and joint initiatives among Rotaractors across the region. The annual SEARIC Summit serves as the network’s flagship gathering, bringing together Rotaractors and Rotarians from participating countries for shared learning, fellowship, cultural exchange and collective growth.

Under the theme “The Role of Technology in the Future of Careers and Services,” SEARIC Summit Sri Lanka 2026 will explore the rapidly changing relationship between technology, careers, leadership and community service. As emerging technologies continue to transform industries and the way people work, the summit will provide a platform for young leaders to examine how technology can be used not only to prepare for the future of work, but also to strengthen the way communities are served. Across three days, delegates will participate in leadership and professional development sessions, discussions, cultural experiences, networking opportunities and community-focused programming, with the central theme reflected throughout the summit programme.

Beyond the Rotaract movement, the event also contributes to Sri Lanka’s broader positioning as a destination for international conferences, youth leadership programmes and regional collaboration. With hundreds of international delegates travelling to the country, the summit provides an opportunity to showcase Sri Lanka’s hospitality, culture and potential as a host destination for future international gatherings. The event further creates a platform for young leaders from across South East Asia to connect with Sri Lankan counterparts, exchange ideas and explore opportunities for cross-border collaboration.