(Photo of Sri Lankan Garment Workers, Credit ILO Asia-Pacific)

Sri Lanka’s Joint Apparel Association Forum warns that the country is losing 10-20% of its orders to India and Bangladesh as the ongoing crisis has shaken the faith of buyers.

“Some of the buyers have said that there is a high risk, so they have shifted 10-20% of their orders to India and Bangladesh,” JAAF Deputy Chairman Felix Fernando told interviewers at Derana.

He further stressed that major brands have had to meet with buyers in recent weeks to reassure them that the ongoing unrest in the country would not disrupt their orders. Fernando notes that buyers have proven reluctant to place orders for the five to six months after June.

The Export Development Board reports that the apparel and textile sectors brought in $ 1.9 billion between January and April 2022, a 13% year-on-year increase compared to the past year; however, this cannot be sustained unless the faith of buyers is restored.

The situation may be further worsened by concerns of a coming global recession which would further dampen the buying power of apparel buyers and badly damage Sri Lanka’s export sector.

During his interview, Fernando noted that road closures due to protests had caused difficulty for apparel companies in getting their workers into the factor leading to missed deadlines. However, he notes that trade unions have recognised the seriousness of the challenge and have not taken to strikes. Fernando further stated:

“We cannot blame anyone because the people in the country are under a lot of pressure, as the daily wage earners have no means of earning an income. But when they come to the street with their problems, the roads are closed; and when that happens, our factory employees find it difficult to go to work,” he added.

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