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Garment workers face job losses as Lankan factories lose to Bangladesh amid slowdown

Published

3 years ago

2023/05/15

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.

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House erupts over suspension of Deputy Secretary General

Published

6 hours ago

2026/02/4

Sahan Weerasooriya

Opposition and SJB Leader Sajith Premadasa yesterday raised concerns over the recent suspension of Parliament’s Deputy Secretary General and Chief of Staff, G.K.A. Chaminda Kumara Kularatne, alleging that the process appeared to be mala fide. Addressing Speaker Jagath Wickramaratne in Parliament, Premadasa said that the existence of a personal disagreement between the Speaker and the suspended official had created a potential conflict of interest.

Premadasa said disciplinary action against senior parliamentary officials had to be taken in keeping with established parliamentary precedents. He also questioned the legality and propriety of a lower-ranking official leading an inquiry against a senior officer.

“For the first time, we are witnessing a rift between the Speaker and the staff of the Secretary-General. All parties must step back, act democratically and ensure that the fundamental rights of Chaminda Kularatne are safeguarded,” he added.

ITAK Batticaloa District MP Shanakiyan Rasamanickam said Kularatne had not been given an opportunity to respond to the allegations made against him.

“This is a disgraceful situation. A complaint has been lodged against you with the Bribery Commission. Parliament is the supreme institution of democracy in this country, and the precedent being created here is dangerous,” Rasamanickam said, addressing the Speaker.

SJB Kandy District MP Chamindranee Kiriella said the Speaker was duty-bound to inform the House before disciplinary action was taken against a parliamentary official. SJB MP Ajith P. Perera said it was unethical for the Speaker to assume a leadership role in the inquiry, and called for the matter to be entrusted to an independent authority.

Responding on behalf of the Government, Chief Government Whip and Health and Mass Media Minister Dr Nalinda Jayatissa said the chief investigating officer, S.K. Liyanage, an Additional Secretary, had been appointed by the Staff Advisory Committee on 25 August, 2025. He said Liyanage had been selected from a pool of qualified officers at the Ministry of Public Administration and had prior experience in conducting investigations.

Leader of the House and Transport Minister Bimal Rathnayake said the Staff Advisory Committee had agreed on the respective powers of parliamentary officials, noting that the Secretary General would hold powers equivalent to those of Ministry Secretary, while the Deputy Secretary General would hold powers equivalent to those of an Additional Secretary.

“There is no irregularity in the conduct of the investigation or in the appointment of the investigating officers,” Rathnayake said.

On 24 January, 2026, Parliament announced the immediate suspension of Deputy Secretary General and Chief of Staff Chaminda Kularatne with effect from 23 January, citing concerns relating to his appointment. Kularatne had assumed duties on 15 September, 2023.

On Monday, Kularatne filed a complaint with the Commission to Investigate Allegations of Bribery or Corruption against Speaker Jagath Wickramaratne, alleging corruption. His legal counsel, Attorney-at-Law Mithun Dias, said the complaint had been filed against the Speaker in his personal capacity and not against the government.

However, Dr Jayatissa told the House that the investigation into Kularatne was based on concerns relating to his appointment, qualifications and the process by which he had been confirmed in that post and was not linked to any personal dispute with the Speaker.

By Saman Indrajith

News

78th Independence Day celebrations at Bogambara Stadium

Published

6 hours ago

2026/02/4

Sahan Weerasooriya

The 78th Independence Day celebrations in the Central Province are scheduled to be held today from 8:00 AM at the Bogambara Stadium, Kandy.

The celebrations are jointly organised by the Central Provincial Council and the Kandy District Secretariat. The Governor of the Central Province, Prof. S.B.S. Abeykoon, is expected to grace the occasion as the Chief Guest.

The event will also see the participation of Kandy District Members of Parliament, the Chief Secretary of the Central Province, Mr. Ajith Premathilake, as well as representatives from the Tri-Forces, Police, school students, and various voluntary organisations.

The ceremony will feature a formal parade and cultural performances by school children.

By S.K. Samaranayake

News

Colombo-Kandy railway line to be fully restored this year – Minister Bimal

Published

6 hours ago

2026/02/4

Sahan Weerasooriya

Minister of Transport, Highways, and Urban Development, Bimal Rathnayake, has announced that the reconstruction of the Colombo-Kandy railway line, which was severely damaged by landslides in the Balana and Kadugannawa areas, will be completed within this year to restore normal train services.

The Minister made this statement during the Kandy District Development Committee meeting held at the District Secretariat. He noted that work will commence following the observations and technical reports provided by the National Building Research Organisation (NBRO) regarding the stability of the landslide-affected areas.

Financial Management and Development

Minister Rathnayake emphasised that the government possesses the necessary funds for development projects.

“Our government has the funds. However, all officials must ensure these funds are managed efficiently so that they are fully utilised for development, without being returned to the Treasury at the end of the year,” he stressed.

Improvements in Public Transport

Highlighting the progress in the transport sector, the Minister shared several key updates

• Recruitment: 700 new employees have been recruited to the Sri Lanka Transport Board (SLTB) and are currently undergoing training.

• School Transport: Steps are being taken to strengthen the ‘Sisu Sariya’ school bus service within the Kandy District.

• Infrastructure: The reconstruction of the Peradeniya Black Bridge (Kalu Paalama), which was damaged during the ‘Ditwah’ disaster, is nearing completion.

Welfare facilities for Private Transport Workers

The Minister also revealed plans to support the welfare of private bus drivers and conductors.

“We must look after the workers in the private transport sector as well. We are planning to establish a welfare fund for them and are taking steps to include them in the Employees’ Provident Fund (EPF) system,” he added.

Concluding his remarks, the Minister urged state officials to perform their duties responsibly and ensure that the inefficiencies seen under previous administrations do not recur.

By S.K. Samaranayake