In the wake of Covid-19 crisis Sri Lanka’s apparel industry is now on the verge of collapsing as it will face an immediate contraction of 1.5 billion US dollars in exports during the 3-month period ending in June when compared to the last fiscal year.
“However, the damage does not stop there as apparel sector expects further demand contractions that could result in a reduction of apparel exports by an additional 30 – 40% after June, in a best-case scenario,” JAAF Chairman A. Sukumaran said in a statement.
Currently, the apparel industry in Sri Lanka has over 400,000 direct employees and in the last fiscal year recorded 5.6 billion dollars of exports.
“Export-oriented SMEs are at a very difficult situation compared to large players and the members who are catering to the domestic market also will be in a dire status as a minimum of 50% of their turnover is totally lost as a result of missing this festive season”,he said.
“Thus the fate of Sri Lanka’s apparel industry where 2 million citizens of this country relies is dependent on the effectiveness and speed at which following proposals can be implemented,”he added.
With this situation in mind, JAAF has tabled certain proposals for urgent consideration wwhile urging the authoriies to help reopen apparel factories in their full capacity as early as possible to avoid a very serious trade shift that may take place in favor of competitor countries.
JAAF requested a means of sustenance for employees who will have no work to perform from April, for Companies employing less than 3,000 people and the suspension of EPF/ ETF for 6 months for employers and employees
Failure to intervene at this stage will result in the inevitable doom of the industry with a large proportion of participants being forced into staying at home with no work to fulfil, the Joint Apparel Association Forum further stated,
(LI)