News
Improvement in garment sector orders in first two months of 2024, but still to see 2022 volumes
By Saman Indrajith
The apparel sector has received more orders in the first two months of 2024, compared to the same period in 2023, Deputy Chairman of Joint Apparel Association Forum Sri Lanka (JAAF) Felix Fernando said.
However, one must not forget that last year was a particularly bad year for the sector, he said. “We are still not seeing the volumes we did in 2022. We hope things will improve in the coming months.”
Fernando said 2023 was a bad year for the entire export sector, mainly due to external problems. The war in Ukraine adversely affected the economies in the European Union and there was a drop in the purchasing power of people living in the US and the EU.
“In general, the US imported 22 percent less apparel from across the world. This was about 10 percent in EU countries. We got less orders because of this and a lot of factories reduced working hours and some operated only a few days of the week. This year there is a positive development and factories that focus on some categories have got more orders. Some clients, who used to work only in Bangladesh, have come to Sri Lanka to reduce the risk of importing from one location.”
He added that the demand for items, like underwear, and active wear, has increased.
Fernando said there isn’t a big difference in the production cost of apparel between Sri Lanka and Bangladesh. A few months ago, Bangladeshi manufacturers had to increase the salaries of their workers significantly.
“One of the conditions of GSP+ is that the fabric we use for garments must come from Sri Lanka, another SAARC country or an EU country. The quality of fabrics produced in India and Pakistan are low. For high quality material at low cost, most people go to China, Thailand, Vietnam, Indonesia, or Korea. People feel that it is better to get good quality cheap fabrics from the countries I mentioned than trying to adhere to the conditions I stated. Because of that we only use about 60 percent of the quota given by GSP + concessions,” he said.
Fernando went on to say that one of the main problems they face is the policy uncertainty that prevails in the country and the lethargy the State has shown to ensure market access for Sri Lankan businesses. In the long term the industry must look at enhancing productivity and enhancing the quality of labour.
“We are not a country with a lot of people. So, how do we attract new people to work in the industry? A lot of workers left the country in the last two years to work in Eastern Europe and the Middle East. We must create an environment that’s conducive to their return.”
Fernando said the rupee has appreciated against the dollar in the past few months. However, the cost of living has not gone down and a stronger rupee is bad for exporters.
“We have spoken to senior government officials about our concerns. I think they, especially the Governor of the Central bank, are aware of this. This is why the Central Bank is buying dollars from the market. The appreciation of the rupee is good if the cost of living goes down. If the price for food, transport, etc., goes down, our costs will also go down. However, these costs have not gone down,” he said.
Latest News
Heat index, is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 27 April 2025, valid for 28 April 2025
The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
Latest News
People have now started to think of themselves as Sri Lankans sans ethnic or religious divisions- PM
Prime Minister Dr. Harini Amarasuriya stated that for the first time in history, mosques in Kandy had opened their doors to accommodate the needs of devotees visiting the Temple of the Sacred Tooth Relic and that people have now started to think of themselves as Sri Lankans beyond dividing into ethnicities and religions.
The Prime Minister made these remarks while addressing a public gathering held in the Paragahadeniya area in Kurunegala.
Prime Minister Dr. Harini Amarasuriya further stated:
“This country is undergoing a transformation we expected,so accordingly, we must operate in new ways. People are beginning to feel that we must work towards a new transformation. We can see this change even within our ministries. These days, sometimes when we visit ministries even after 5 PM, and ask if it is possible to have discussions, the officials are always open. Today, public officials are willing to work late into the night, until 9 or 10 PM. Officials have now started working without fear.
Remarkably, for the first time in history, Muslim mosques in Kandy remained open throughout the night to accommodate pilgrims visiting the Temple of the Sacred Tooth Relic. They even provided space for devotees to rest. There were no ethnic or religious tensions. What we saw was respect for other ethnicities and religions. This is happening because there is now a sense of a government that represents all Sri Lankan people, not just Sinhalese, Muslims, or Tamils”.
The event was attended by the candidates for the local government election including the residents of the area.
[Prime Minister’s Media Division]
The Frontline Socialist Party (FSP) has urged the NPP government to prevent Japan’s Onomichi Dockyard Company from selling its 51% ownership stake in the Colombo Dockyard Limited (CDL) to Indian government-owned Mazagon Dock Shipbuilders Limited, Mumbai, a leading shipbuilder.
FSP spokesman Pubudu Jayagoda told The Island yesterday (27) that the move seemed to be in line with the overall India-Sri Lanka understanding on the basis of the recently signed memorandum on defence cooperation.
Against the backdrop of deteriorating financial situation, the Japanese company has informed the board of directors of CDL of its plans to divest its 51 percent ownership stake in the international shipbuilding and repair company. The Japanese shipbuilder made the announcement in early Dec last year.
Alleging that an agreement has been reached on the sale of Onomichi’s controlling ownership stake to the Indian ship builder, Jayagoda questioned
the move as Mazagon primarily built a range of warships and attack submarines. Jayagoda pointed out that according to Mazagon’s profile, the Indian government-owned business undertaking was involved with European companies engaged in ship and submarine construction.
Addressing a Local Government election meeting at Weeraketiya, Pallekanda, in support of those contesting the May 6 election on the ticket of Jana Aragala Sandhanaya (JAS), the executive committee member of JAS Jayagoda emphasized that in terms of the agreement between Sri Lanka and Japan, Onomichi couldn’t sell its stake without the Sri Lankan government’s approval. Therefore, the NPP government should intervene to halt the Japanese-Indian move, the FSP spokesman said while urging the parliamentary opposition to publicly oppose the planned sale of the Japanese stake.
Among other stakeholders are Sri Lanka Insurance, Sri Lanka Ports Authority and EPF.
By Shamindra Ferdinando
Heat index, is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Mullaitivu and Vavuniya districts
People have now started to think of themselves as Sri Lankans sans ethnic or religious divisions- PM
Heavy showers about 100 mm are likely at some places in Central, Sabaragamuwa, Uva, Eastern and North-central provinces and in Vavuniya, Mullaittivu and Kurunegala districts.
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