Business

A new vision to help Sri Lankan apparel rise to the challenges of 2022

Published

3 years ago

2022/01/14

By A. Sukumaran – Chairman, Joint Apparel Association Forum

Despite having faced down another tumultuous year, the Sri Lankan apparel industry has shown remarkable resilience in 2021, and we believe the advances we have made over the past year have put the entire sector in a much stronger position to weather the escalating challenges of 2022. A review of the data from 2021 and the measures that firms in the industry have taken indicate how the industry is poised.

Following in the wake of unprecedented economic disruptions for Sri Lanka – and the rest of the world – caused by the second and third waves of the Covid-19 pandemic we now see some persistent uncertainty around prospects for 2022. Driving this volatility so far is the emergence of Omicron which is reportedly the most highly transmissible variant of Covid-19, and in the backdrop of rising geopolitical tensions between the US, and China and Russia. If any one of these factors is exacerbated, further disruptions to global trade are inevitable.

Consider exports. In pre-pandemic 2019, apparel exports amounted to $5.2 billion1, almost 48 per cent of all merchandise exports (which makes it a crucial contributor to trade and external finances). In 2020, the pandemic’s spread led to a steep decline in trade and travel, and ultimately global GDP; no country was spared.

Sri Lanka’s garment exports also declined sharply in 2020; nationally enforced lockdowns hit production, and order cancellations were high. Exports fell by almost a quarter (more than 24 per cent) to $3.93 billion. In 2021, garment exports jumped back up by 21.5 per cent at September-end to $3.54 billion2. They will fall just short of the targeted $5,1 billion.

The remarkable progress was made possible by an accelerated vaccination programme with the support of the government and the logistical capability of our military. The Joint Apparel Associations Forum of Sri Lanka (JAAFSL), an apex body of apparel industry associations, played a crucial coordinating role.

For business owners, worker safety is a high priority. Factories and places also put safety protocols, redesigned shop floors to enable social distancing, strictly monitored masking, personal protection, and employee behaviour. Compliance was strictly implemented with surprise checks by officials from the Ministries of Labour and Health.

Yet, during the course of the pandemic in 2020 and 2021, business owners were faced with false accusations that workers were not being paid and were instead being laid them off by the thousands. But as events later demonstrated, these accusations was totally unfounded, and ran contrary to the actual situation on the ground.

First, in cooperation with the government and represented by JAAFSL, workers who could not come to work because they were sick were paid LKR 14,500 a month whether they came to work or not. That is 45 per cent more than the minimum wage mandated by law, even when they were not working.

Second, as noted previously, an accelerated vaccination programme was implemented and acted upon. Worker safety was ensured with strictly enforced mandated safety protocols. The enforcement of the protocols were extended even to non-direct apparel workers such as canteen workers and other suppliers and vendors.

One number helps make the point. One important study on the impact of Covid-19 on the apparel industry estimated the pre-pandemic workforce at roughly 350,0003. The strength of the workforce at the end of 2021? Contrary to reports of layoffs and resignations made publicly by some parties during the pandemic, the workforce is now back at 350,000.

That’s not all. During the course of the pandemic, both large companies and smaller firms adopted and adapted technology to develop solutions to new problems. Consider samples. Fashion changes are fairly frequent, so buyers require samples that they test and then approve for manufacture. As transport was disrupted and flights restricted, some firms used 3D technologies that could be created at the buyers’ end and approved.

That was just one instance where technology was used innovatively to overcome logistical challenges. Many others are aligned with the vision of making Sri Lanka a global hub for innovative apparel making. There are many others, aligned with the vision of making Sri Lanka a global hub for innovative apparel making. And the same spirit of innovation is pervasive in the apparel industry’s sustainability agenda that sets a global benchmark for ethical, environmentally responsible manufacturing.

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Business

Central Bank aware of upside and downside risks to its inflation projections

Published

24 hours ago

2024/12/2

Thilina Walpola

by Sanath Nanayakkare

The Central Bank forecasts the headline inflation to remain negative in the next few months, deeper than previously projected, but expects it to turn positive thereafter and gradually align with the targeted level of 5% over the medium term, aided by appropriate policy measures.

Attributing larger downward adjustments in energy prices and reduction in volatile food prices to the current negative headline inflation, the Central Bank, however, is keeping its eye on upside and downside risks to inflation projections in the near to medium term.

The Bank says possible upward pressures on the headline inflation could stem from six factors; namely:

Possible upward pressures on global food and energy prices amidst geopolitical uncertainty
Possible realisation of demand for higher wages
Possible adverse weather conditions that could affect agricultural production
Any deviation from the envisaged fiscal consolidation path
Possible rupee depreciation at higher levels
Possible sticky global inflation due to the policy changes in the USA And in relation to downside risks to inflation projections, the Bank cites two key reasons among others, namely.
Possible price reductions of essentials
The sustained impact of diminished purchasing power of people

In line with the Central Bank’s near-term projections, the headline inflation remained in negative territory for the third consecutive month, recording a deflation of 2.1% in November 2024 compared to the deflation of 0.8% in October 2024.

Non-Food inflation (Y-o-Y) decelerated further to -3.3% in November 2024 from -1.6% in October 2024. Meanwhile, Food inflation (Y-o-Y) decelerated to 0.6% in November 2024 from 1.0% October 2024. On a month-on-month basis, the CCPI recorded a decline of 0.25% in November 2024 due to 0.02% reduction in the prices of items in the Food category and 0.23% reduction in the prices of items in the Non-Food category.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, moderated further to 2.7% in November 2024 from 3.0% in October 2024.

The Island Financial Review asked the Central Bank at the press conference last week whether the continuing disinflation would have adverse impacts on production, corporate profitability and labour recruitment and hiring.

Dr. Chandranath Amarasekara- Assistant Governor, Central Bank replied,” We do not expect disinflation to continue for such a long time to have an impact on production. By the end of the second quarter next year, we will see the end of disinflation.”

Business

Social media influencers from Australia to present engaging digital narratives on SriLanka Tourism

Published

24 hours ago

2024/12/2

Thilina Walpola

The four influencers ‘hold sway’ over an audience of more than 1.5 million

In an exciting initiative to bolster Sri Lanka’s tourism industry, the Sri Lanka Tourism Promotion Bureau (SLTPB) is set to host four prominent Australian-based social media influencers in December 2024. The campaign aims to capture the allure of Sri Lanka through the eyes of these digital content creators, whose combined reach spans millions of followers across Instagram and TikTok. The endeavor promises to spotlight Sri Lanka as a premier destination for travelers seeking unique cultural, natural, and luxury experiences.

From December 4 to 16, 2024, the influencers will embark on a captivating 12-day journey across the island, visiting iconic destinations such as Negombo, Trincomalee, Dambulla, Habarana, Sigiriya, Kandy, Nuwara Eliya, Ella, Little Adam’s Peak, Yala National Park, Mirissa, Galle, and Colombo. Their travel experiences, captured through photos, videos, and stories, will highlight the island’s rich heritage, diverse landscapes, and unparalleled hospitality.

The four influencers—Luana Soares Ostling, Simran Gulati, David Yiu Wai Chin, and Dylan Mahoney—bring unique perspectives and diverse content styles to the table. Luana Soares Ostling, with her expertise in fashion, lifestyle, and luxury travel, and over 1 million followers on Instagram, is expected to offer an aspirational view of Sri Lanka’s luxury offerings. Simran Gulati, a well-known model and actress, will highlight the intersection of wellness, beauty, and travel. Her 210,000 Instagram followers and collaborations with global brands such as Giorgio Armani and her media presence are sure to capture the attention of affluent Australian tourists.

Meanwhile, David Yiu Wai Chin, an influencer and professional photographer, will use his skills to create stunning visual content that showcases Sri Lanka’s landscapes and cultural heritage. With 161,000 followers on Instagram, David’s creative photography is bound to capture the beauty of Sri Lanka in a way that resonates with his audience. Lastly, Dylan Mahoney, known for his travel and lifestyle content on Instagram and TikTok, will focus on the authentic, real-world experiences that Sri Lanka has to offer, particularly for younger, adventure-driven travelers. Dylan boasts 46,900 Instagram followers and 101,000 followers on TikTok, and his content blends personal narratives with vibrant visuals.

Business

ComBank unveils biggest card promo to date

Published

24 hours ago

2024/12/2

Thilina Walpola

The Commercial Bank of Ceylon has unveiled its annual year-end discounts bonanza for credit and debit card holders, heralding another season of great bargains.

The Bank has announced that 4,000 merchant outlets across Sri Lanka will offer discounts of up to 50% on selected days up to 31st December 2024, exclusively to its cardholders.

These discounts will be offered by 187 merchant partners retailing clothing and fashion accessories, 62 lifestyle products partners, 26 partners retailing shoes and leatherware, 74 hotel partners, 22 jewellery partners, 18 healthcare partners, nine salon, spa and cosmetics partners, five supermarket partners, nine automobile partners, six watches and accessories partners, and seven dining partners, the Bank said.

Additionally, 90 online vendor partners will offer discounts to ComBank credit and debit card holders during the promotion period.

Commenting on the promotion, the Head of Commercial Bank’s Card Centre Nishantha De Silva said: “Our seasonal card promotion gets bigger every year, with more merchant partners joining the programme as the cardholder base keeps growing. This has made the Commercial Bank card promotion one of the most anticipated in the industry, as well as one of the most varied in terms of the products and services on offer. It’s an excellent opportunity to save while celebrating the festive season.”

He said the participating merchants represent the largest collection of offers this season, with numerous discounts available across a wide range of outlets, providing amazing benefits to customers.