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Threads of Resilience: Is Sri Lanka’s apparel sector prepared to face Pathogen X?

Published

2 years ago

2024/03/13

Chaya Dissanayake is a Research Assistant at the Institute of Policy Studies of Sri Lanka (IPS). She holds a B.Sc. (Hons) in Agriculture specialised in Agricultural Economics from the University of Jaffna and is currently reading for an MSc in Integrated Water Resource Management at the Postgraduate Institute of Agriculture, Peradeniya. Her research interests include agricultural policies and institutions; disaster risk management; poverty and inequality; SMEs; women and workforce.

By Chaya Dissanayake

Sri Lanka faces a high-risk situation with the looming threat of a potential future pandemic.

A recent IPS study reveals that the Sri Lankan apparel sector, particularly women workers, bore the brunt of the COVID-19 pandemic, with 24% of women not recalled for work during the pandemic’s initial phase.

Urgent streamlining of pandemic response policies for the sector is crucial to provide timely support and minimise losses in life and revenue.

The World Health Organization (WHO) is expressing concerns about the global community’s readiness for pathogen X, a highly contagious pathogen that could emerge in the future. Scientists predict a higher likelihood of its origin in tropical regions, placing Sri Lanka at considerable risk.

The COVID-19 pandemic severely impacted the livelihoods of millions of workers across Sri Lanka. The manufacturing sector, where workers are in very close proximity to one another, faced more challenging conditions than other sectors such as agriculture. Given the significance of the apparel industry in the manufacturing base and as a source of employment in Sri Lanka, this blog assesses the pandemic’s impact on female apparel workers and guides future policies to minismise the cost of similar episodes.

Disruptions to Livelihoods

At the onset of the COVID-19 pandemic, estimates from the Labour Force Survey 2020 data suggest that the apparel sector in Sri Lanka employed approximately 470,000 workers with 70% of them being women. The majority of these women are primarily in low-skilled positions, such as machine operators, line helpers and cutters. Approximately 33% of these female apparel workers are informal (for comparison only 13% of male apparel workers are informal). Focus group discussions revealed many apparel employees are internal migrants, living in shared rentals.

The pandemic response transitioned from an emergency response stage to a more organised response mitigating health and economic impacts over time (Infographic 1). The initial emergency response phase (March-June 2020) saw sudden lockdowns, income loss, and restricted access to healthcare. Apparel workers faced many challenges during this initial period due to the nature of their work and their living arrangements.

The situation was particularly dire for internal migrants in the apparel industry. Residing in overcrowded boarding houses, these workers struggled with implementing basic pandemic safety measures like physical distancing and quarantine. “Even though we were told to use separate washrooms, it was difficult to get those facilities in the boarding houses”; one female worker in Katunayake reminisced. Furthermore, the absence of systematic information to identify and provide social security benefits to individuals living outside their registered localities further exacerbated their vulnerability. According to the household survey to assess the impact of the COVID-19 pandemic carried out by the DCS, only 63% of all apparel workers received cash assistance provided by the government. In contrast, 71% of workers in the food processing industry and 68% of workers in the textile industry, in similar occupational categories, received emergency financial assistance. In discussions, female workers revealed that those from low-income families eligible for cash transfers missed out due to their residential status.

Abrupt job losses too led to severe financial consequences. Estimates based on the COVID-19 impact survey data suggest that, in the initial phase, 24% of women and 11% of men employed in the industry experienced job suspensions due to temporary factory closures. In contrast, the same statistic for all female workers in similar occupational categories across all sectors, was 11.3% while for male workers it was 12.8%. When the apparel factories restarted in May 2020, temporary workers, especially those who were part-time workers and line helpers, faced job suspensions without benefits as revealed in discussions. They were unable to find alternative employment and faced significant economic hardships.

Health and Social Challenges

Women workers during health crises face more pressure to allocate time for care work. The IPS study too observed that in the second phase of the pandemic, women apparel workers found it challenging to balance their work with the increased care responsibilities due to the frequent closure of schools and daycare facilities. Non-migrant workers received family and peer support, which migrant workers lacked.

Loss of livelihoods directly affected the nutrition and well-being of women despite the government’s relief measures including ration distribution. Again, estimates from the COVID-19 survey reveal the considerable impacts the initial lockdown had on apparel workers with regard to food security and employment (Infographic 2). Women were twice as likely to go without food or to quit the industry.

In addition to the economic shock, female workers faced greater challenges in accessing medical care in the first phase of the pandemic. In the apparel industry, the COVID-19 survey data show that 16.3% of women workers (twice that of male workers at 8.3%) had no or limited access to health services during the first phase. Many apparel workers rely on public transport, in its absence, accessing health services was difficult. Restricted mobility also affected the provision of maternal healthcare as midwives could no longer conduct home visits.

The absence of information on women apparel workers hindered effective responses. The IPS study interviews with key industry informants revealed that the Board of Investment’s attempt to identify and isolate at-risk individuals in export processing zones and the trade unions’ proposal for chemical sanitisation of shared worker accommodations failed due to the lack of a database on workers’ residential addresses for example.

Apparel workers also faced harrowing social stigma as ready-made garment factories were publicised as pandemic hotspots. “People in the village were afraid to help while quarantined because we worked in garment factories,” shared a woman who lived in a rented room in Katunayaka.

The export-oriented apparel industry in Sri Lanka adapted to the pandemic faster and maintained the employment level compared to other more domestic-oriented manufacturing industries. However, substantial health and economic impacts on women workers could be found, which need to be minimised in future pandemics to boost the resilience of the industry and the workforce.

The WHO stresses the importance of strengthening existing programmes with community-centered and evidence-based policy changes to counter the threat of pathogen X. One important concern is whether the policies would benefit all members of a community. As drawn from the IPS’ study observations, women faced more difficulties accessing health care, nutritional needs and necessities during the initial response. As the pandemic progressed, the widening gender gap became more pronounced due to women’s increased care work responsibilities.

Informed decision-making is critical for efficient pandemic containment, which necessitates quick access to information about vulnerable workers via centralized data. Given the large number of internal migrants in the workforce, improved information on workers will improve methods of delivering social benefits to them. For instance, providing safe living conditions to workers who live in congested housing, and making sure workers in low-income brackets receive aid in a future pandemic event could be made easier with such information. Another way to tackle the gaps revealed here is to involve more women in decision-making so that women-specific needs do not go unnoticed during emergency responses to crises.

Streamlining pandemic policy responses also includes expanding existing employment benefits programmes like EPF and ETF to cover abrupt unemployment due to crises, providing a financial buffer until re-entry into employment is feasible and reducing voluntary exits from the industry.

*This blog is based on an ongoing IPS study on improving pandemic policy response funded by the International Development Research Centre (IDRC).

Link to the original blog: https://www.ips.lk/talkingeconomics/2024/03/12/threads-of-resilience-is-sri-lankas-apparel-sector-prepared-to-face-pathogen-x/

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Newburgh Ella set to fill a critical gap in luxury hotel infrastructure

Published

24 hours ago

2026/02/9

Thilina Walpola

Strategic Rs. 1.5 billion project by Browns Hotels & Resorts under LOLC Group

The Sri Lankan leisure landscape saw a significant addition on January 30, 2026, with the official opening of Newburgh Ella – The Tea Factory Resort. This Rs. 1.5 billion project, a strategic diversification by Browns Hotels & Resorts under the LOLC Group, transforms a 123-year-old tea factory into a luxury destination designed to capture the growing global interest in Ella.

The resort is housed in a structure originally established in 1903 by Scottish planter George Thomson. During the conversion, LOLC ensured the core structure was preserved, even reusing steel and other structural raw materials to maintain the factory’s industrial soul.

“We decided to transform it into a hotel without harming the core structure, ensuring the prevention of nature,” noted Gangadaran Velsamy, General Manager of Newburgh Ella. This commitment to sustainability extends to the resort’s operations, which follow a fully paperless concept and are currently undergoing LEED and green certification processes.

At the helm of the hotel’s operations is Gangadaran Velsamy, the seasoned professional with over 25 years of experience across 10 international and local hotel brands, including Dubai One and Only and Taj Samudra. A graduate of the Ceylon Hotel School, Velsamy brings a mission-driven approach to the property.

“My mission is to make Newburgh Ella the best hotel in Ella that offers nothing but the best for the guests that Ella couldn’t offer ever before in its history,” Velsamy told The Island Financial Review. His management style is notably people-centric, utilising multiple management approaches to maximise the potential of his human resource.

A key highlight of the project’s “human side” was the absorption of the original Finlays tea factory staff. These employees underwent six months of intensive theoretical and on-the-job training at 5-star properties to transition into the hospitality sector.

Further supporting the local economy, 50% of the hotel’s workforce is recruited from the immediate neighborhood. This integration is reflected in the resort’s service culture; for instance, pre-booked restaurant tables are marked with “Promised” tags rather than the standard “Reserved,” signaling a deeper level of commitment to the guest.

Newburgh Ella features 41 rooms categorised as Silver, Gold, and Bronze – a naming convention inspired by tea tips. Room rates range from USD 250 to 350 per day (approximately LKR 75,000 to 100,000).

Key Facilities Include:

1903 – The Dining Room: An all-day dining venue.

Eastern Valley: An open-air restaurant specialising in Asian fusion.

George Thomson – The Founder’s Tavern: A bar named in honour of the factory’s founder.

Three Tips Tea Lounge: A dedicated space for tea tasting and the “living tea experience”.

SKY Observation Deck: Offering views of Ella Rock and Little Adam’s Peak.

From a business perspective, the resort addresses a critical need for high-end infrastructure in Ella, a destination famed for its “exhilarating vibes” but often underserved in the premium segment.

Eksath Wijeratne, CEO of Browns Hotels & Resorts, expressed confidence in the property’s financial trajectory, estimating a breakeven point within five to six years.

“If we see Sri Lanka achieving more arrivals in correlation with increased revenue inflows, we should be able to reach a breakeven within a shorter period,” Wijeratne stated. He emphasised that the resort is a key piece of infrastructure to boost foreign currency earnings, attracting discerning travelers whose spending directly bolsters the country’s economy.

Ultimately, the success of Newburgh Ella lies in its details – such as the “Promised” tags on restaurant tables that replace the cold, standard “Reserved” signs. This subtle shift in language, championed by Velsamy’s team, encapsulates the resort’s mission: to honour a century of history while delivering a standard of service that Ella has never before hosted.

The “gastronomical delights” of Newburgh Ella are presented perfectly with the seasoned artistry of Chef Senthilkumar. Having spent over 18 years refining his craft across the luxury landscapes of Dubai, Kuwait, and the Maldives, the Chef transforms world-class techniques into unforgettable dining experiences, redefining the art of the meal in the heart of Ella.

In addition to Newburgh Ella’s refined hospitality and “yummy” gastronomy, guests have easy access to the region’s crown jewels such as Ella Gap and Ravana Cave to the thundering beauty of Ravana Falls.

By Sanath Nanayakkare

Business

A deep dive into Fitch Lanka report shows ‘Resilience of the Few’

Published

24 hours ago

2026/02/9

Thilina Walpola

The domestic credit landscape is currently anchored by a handful of high-performing institutions that have displayed significant resilience through the nation’s most turbulent years, a deep dive into the latest monthly report of Fitch Lanka shows.

While the public often equates the often-adulated private sector credit growth with widespread business expansion, the Fitch Lanka data shows a concentration of capital among the country’s elite ‘blue-chip’ firms.

This latest assessment from Fitch Ratings (Lanka) Ltd. is being hailed by experts as a vital assessment for the country’s financial system. While the technical details of credit ratings can seem dense, an independent economic analyst told The Island Financial Review that these reports act as a ‘global report card,’ fundamentally demonstrating how much international trust is placed in Sri Lankan enterprises.

According to the analyst, the ratings issued as of January 31, 2026, serve as more than just corporate scores; they are the primary benchmark used by global investors to determine the safety of bringing capital into the country.

“High ratings are essential for attracting Foreign Direct Investment (FDI), which is the engine for job creation and infrastructure development. These scores are critical for trade finance, allowing local businesses to import essential goods and export products without friction. The ratings provide a real-time snapshot of how Sri Lankan entities are viewed within the highly competitive global capital markets,” he said.

“Banking sector stability is crucial here. Major institutions like Commercial Bank and HNB maintain strong long-term positions. Meanwhile, blue-chip firms including Dialog Axiata PLC and Hemas Plc continue to operate within the elite AAA(lka) to AA(lka) range.The presence of top-tier firms in the ‘AAA’ to ‘AA’ range indicates a robust internal capacity to meet debt obligations, providing a buffer even when the global economy is unpredictable,” the analyst noted.

When asked if the contents of the report may encourage investors to pay close attention to entities appearing in Red font, the analyst said that he views it as a ‘vital signal’ of a dynamic and transparent market rather than a sign of crisis,

“Entities such as JAT Holdings and CIC Holdings PLC have recently undergone rigorous reviews. This scrutiny is largely centred on the manufacturing and agricultural sectors, which are currently adapting to volatile global supply chain trends.

Looking forward, the ability of these ‘Red font’ companies to stabilise their outlooks will serve as the ultimate litmus test for the national economy.If these key players can maintain their scores and stabilise their trajectories through the middle of the year, it will be a definitive indicator that Sri Lanka’s broader economic path is secure,” the analyst said.

When asked if this was the case across the board including SMEs, he replied,” In fact, a deeper dive into the latest assessments by Fitch Ratings Lanka reveals a different reality: the engine of this credit growth is not the average entrepreneur, but a select group of ‘big ticket’ corporate giants.

” A superficial glance at the financial headlines might suggest a private sector in the midst of a borrowing spree. With the Central Bank reporting a notable 25.2% year-on-year growth in private sector credit as of December 2025, the outlook of a broad-based economic awakening is tempting. However, the Fitch Ratings Lanka monthly report reveals a different reality: the engine of this credit growth is not the average entrepreneur, but a select group of ‘big ticket’ corporate giants. In essence, these are the ‘safe harbours; where capital is currently docking.

“The data provided by Fitch Ratings Lanka underscores a critical distinction in the 2026 economy that credit is indeed flowing. And the authorities are rightly encouraged by private sector growth. Yet, this is not a tide lifting all boats; it is a strategic fortification of the nation’s most resilient pillars. As the year unfolds, the strength of these ‘big ticket’ borrowers will determine whether the rest of the private sector can eventually follow their lead into a more prosperous era or not,” he noted in conclusion.

By Sanath Nanayakkare

Business

Moose Clothing Company earns Superbrand 2026 recognition

Published

24 hours ago

2026/02/9

Thilina Walpola

The award ceremony held on 12 January 2026, at the Hilton

Moose Clothing Company has been recognised as a Superbrand for 2026, a proud milestone for a young Sri Lankan brand that has grown steadily through trust, consistency, and a strong connection with its customers. The award ceremony was held on 12 January 2026 at the Hilton, celebrating brands that have earned lasting respect and loyalty.

Superbrand status is not awarded lightly. It is reserved for brands that demonstrate excellence beyond numbers, brands known for quality, reliability, emotional connection, and long-term relevance. Selection is based on independent research, expert evaluation, and consumer perception, making it one of the most respected recognitions a brand can receive.

For Moose Clothing Company, this honour is especially meaningful. Founded with a simple belief that Sri Lankans deserve well-made, thoughtfully designed clothing at honest prices the brand has grown by listening closely to its customers and improving with every season. From everyday essentials to performance wear, Moose has focused on getting the fundamentals right: fit, comfort, durability, and value for money.

Commenting on the achievement, Hasib Omar, CEO of Moose Clothing Company, said:

“Being named a Superbrand is deeply meaningful for us because it comes from trust. Moose is still a young brand, and this recognition belongs to our customers who believed in us from the beginning, our teams who work with care and purpose, and everyone who chose Moose Clothing Company as part of their everyday life. It reminds us why we started and encourages us to keep building with integrity.”