News
Garment workers face job losses as Lankan factories lose to Bangladesh amid slowdown
Global economic shocks that decimated apparel demand prompted factories to lay off workers in an industry that accounted for half of Lanka’s export revenue in 2022, said a report by The South China Morning Post yesterday.
The report said: Sri Lanka’s garment sector made up almost half its export revenue last year, after remaining resilient even through the pandemic and the country’s debilitating economic crisis.But shocks in the international market have led to a plunge in demand, prompting factories to lay off hundreds of employees.
For one such worker, who wished to be known as Sunil, the loss of income came as a blow but he felt his youth was an advantage in the job hunt. For senior workers, especially older women, the likelihood of being employed again was low, he said.
Although the large manufacturer he worked at gave each worker a redundancy payout ranging from 100,000 to 150,000 Sri Lankan rupees (US$310-470), Sunil said it was not enough for any family to survive on. “Compensation cannot [match] the loss of permanent income,” he said.
Apparel is one of the biggest export earners in Sri Lanka, an industry that produces goods for major global retailers such as Marks & Spencer, Victoria’s Secret and Nike, among other brands. Last year, the sector accounted for some 46 per cent of Sri Lankan export revenues, or US$5.93 billion.
But amid a challenging global economy, year-on-year export volumes shrank about 11 per cent by March this year, industry statistics showed. Softening market conditions in the United States, European Union and Britain; fears of a global recession; and the Russia-Ukraine war accounted for a sharp contraction in demand, said Yohan Lawrence, head of the Joint Apparel Association Forum of Sri Lanka. But the industry has bigger worries. Data suggests Sri Lanka is losing market share to neighbouring Bangladesh, Lawrence said.
From 2021 to 2022, Sri Lanka’s export revenue rose by 10 per cent, from some US$5.07 billion to US$5.59 billion, while that of Bangladesh grew by 28 per cent, from US$35 billion to US$45 billion.The fact Bangladesh’s growth accounted for almost double of Sri Lanka’s entire market share was deeply worrying. “If that does not frighten [the country], I don’t know what does,” Lawrence said.
Trade agreements are at the core of this dynamic, since Bangladesh as a least developed country (LCD) holds more preferential trade terms, and could export apparel free of duty to the EU and the UK under the “Everything but Arms (EBA)” trade agreements.
Sri Lanka, however, trades under the Generalised System of Preferences, which comes with conditions based on the rules of origin.Sri Lanka’s garment sector made up almost half its export revenue last year, after remaining resilient even through the pandemic and the country’s debilitating economic crisis.
But shocks in the international market have led to a plunge in demand, prompting factories to lay off hundreds of employees.For one such worker, who wished to be known as Sunil, the loss of income came as a blow but he felt his youth was an advantage in the job hunt. For senior workers, especially older women, the likelihood of being employed again was low, he said.
Apparel is one of the biggest export earners in Sri Lanka, producing goods for the likes of Marks and Spencer, Victoria’s Secret and Nike. Photo: ReutersAlthough the large manufacturer he worked at gave each worker a redundancy payout ranging from 100,000 to 150,000 Sri Lankan rupees (US$310-470), Sunil said it was not enough for any family to survive on. “Compensation cannot [match] the loss of permanent income,” he said.
Latest News
Landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara Eliya
The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale and Nuwara Eliya for the next 24 hours commencing at 1200hrs today [08]
Accordingly
LEVEL II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Ududumbara in the Kandy District, Wilgamuwa in the Matale District, and Nildandahinna and Walapane in the Nuwara Eliya District.
LEVEL I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Meegahakiwula, Welimada, Kandaketiya, Lunugala, Badulla, Passara, Uva Paranagama and Hali_Ela in the Badulla District, Ambanganga Korale in the Matale District, and Mathurata and Hanguranketha in the Nuwara Eliya District.
Warning for deep depression over South-east Bay of Bengal Sea area.
Issued by the Natural Hazards Early Warning Centre, Department of Meteorology at 10.30 a.m. on 08 January 2026 for the period until 10.30 a.m. 09 January 2026
The depression in the Bay of Bengal to the southeast of Sri Lanka has intensified into a deep depression and is centered near latitude 5.4°N and longitude 85.3°E, about 420 km southeast of Pottuvil at 05.30 a.m. today (08th). The above system is currently (10:00 a.m.) located about 300 km southeast of Pottuvil.
It is very likely to move west-northwestwards across the southwest Bay of Bengal and cross the Sri Lanka coast between Hambantota and Kalmunai between 5.30 p.m. to 11.30 p.m. on Friday [9th January 2026].
Hence, showery, and windy condition over the island, particularly in the Northern, NorthCentral, Eastern, Uva and Central provinces is expected to enhance from today (08th).
For the Land area:
DAMAGE EXPECTED:
• Damage to huts, temporary shelters and light structures
• Destroy the roof tops/ sheets etc.
• Damage to power and communication lines.
• Breaking of tree branches and uprooting of large avenue trees.
• Damage to paddy crops, banana, papaya trees and orchards.
• Damage to harbor yachts
• Flash flood
• Sea water inundation in low lying areas in the near coast.
Action suggested for the Land area:
• Coastal hutment dwellers are advised to move to safer places. Other people in the affected areas to remain indoors.
• People living in hilly areas (particularly landslide prone areas) and low lying areas in river basins are requested to be vigilant.
• Drivers and people using roads in the hilly areas are requested to be vigilant.
• Beware of fallen trees and power lines.
• Avoid using wired telephones and connected electric appliances during thunderstorms.
• General public is requested to be vigilant regarding impending extreme weather situation.
• For emergency assistance contact the local disaster management authorities.
• Requested to be attentive about future advisories issued by the Department of Meteorology in this regard.
Latest News
Showers above 100 mm are likely at some places in the Eastern and Uva provinces and showers about 50-75 mm in other areas
WEATHER FORECAST FOR 08 JANUARY 2026
Issued at 05.30 a.m. on 08 January 2026 by the Department of Meteorology
The depression over the Bay of Bengal, located to the southeast of Sri Lanka, was centered near latitude 5.3°N and longitude 86.0°E, about 490 km southeast of Pottuvil, at 11:30 p.m. yesterday (07). It is expected to move west-northwestwards and towards the eastern coast of the island during next 24 hours. This system is likely to intensify further into a deep depression during the next 12 hours.
Cloudy skies can be expected over most parts of the island.
Showers or thundershowers will occur at times in the Northern, North-central, Eastern, Uva, Central and Southern provinces. Showers or thundershowers may occur at several places elsewhere in the Island after 1.00 p.m. Heavy showers above 100 mm are likely at some places in the Eastern and Uva provinces. Fairly Heavy showers about (50 – 75) mm are likely at some places in the other areas of the island.
Strong winds about (50-60) kmph can be expected at times over the Eastern slopes of the central hills, the Northern, North-central, North-western and Eastern provinces and in Hambantota, Gampaha, Colombo and Monaragala districts.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
Greenland allies vow action if Trump moves to seize world’s largest island
Landslide early warnings issued to the Districts of Badulla, Kandy, Matale and Nuwara Eliya
Coe commits World Athletics support to Jamaica
Rare mountain gorilla twins born in Africa’s oldest national park
ECB launch ‘thorough review’ in wake of 4-1 Ashes defeat
Warning for deep depression over South-east Bay of Bengal Sea area
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
News3 days agoInterception of SL fishing craft by Seychelles: Trawler owners demand international investigation
-
News3 days agoBroad support emerges for Faiszer’s sweeping proposals on long- delayed divorce and personal law reforms
-
News4 days agoPrivate airline crew member nabbed with contraband gold
-
News2 days agoPrez seeks Harsha’s help to address CC’s concerns over appointment of AG
-
News2 days agoGovt. exploring possibility of converting EPF benefits into private sector pensions
-
Features3 days agoEducational reforms under the NPP government
-
News6 days agoHealth Minister sends letter of demand for one billion rupees in damages
-
Features4 days agoPharmaceuticals, deaths, and work ethics