Sri Lanka, instead of being affected, has gained from the global downturn, with the apparel industry able to reach the US$4 billion target at the end of the 2011 financial year.
Joint Apparel Association Forum (JAAF) Secretary General Tuly Cooray told the Business Times that the apparel industry would be able to reach US$4 billion target revenue set to be achieved in 2015 by end 2011, within the next three months.
While the industry has grown by 47% in exports to the European Union (EU) and by 28% to the United States (US), turnover has reached US$1.637 billion from the EU and US$1.2 billion from the US and over US$300 million from other countries totaling US$3.148 billion.
He noted that the target for 2015 was to achieve US$4 billion as the manufacturing revenue and US$1 billion in terms of harbour revenue. In view of the global downturn, the country has been able to make considerable gains due to falling prices in China, the situation in Bangladesh and the crisis in Egypt, Mr. Cooray explained.
He pointed out that in view of these developments Sri Lanka did not incur a loss from the absence of the GSP plus scheme.
On the other hand, Sri Lanka has been able to grow by 17% into other markets in addition to the EU and the US during the last year, he said.
The industry will be focusing on adopting a new business model that would ensure Sri Lanka would become a hub in the region, Mr. Cooray said.
He explained that in this regard, the industry has sought assistance from the government and this year’s budget is also geared to meet these targets as a result of which in about three months “hopefully it will be in place.”It is expected to be completed by April 1, 2012 that would ensure Sri Lanka would become a commercial hub for transshipment and supply chain.
With the implementation of this new model, the apparel industry will be obtaining government assistance to enter new markets like China, India, Brazil, Russia, Japan and Pakistan. “If we get a minute share that will be a big jump for us,” Mr. Cooray said.
Further, the industry is also looking at identifying the SMEs in a bid to introduce them to the large companies and develop a relationship with the aim of creating a win-win situation for both parties, he said.
Mr. Cooray observed that in this respect they are also trying to obtain financial assistance from the government and are also working with the Export Development Board (EDB) with the aim of improving their market penetration capacities.
Currently, the industry is looking at penetrating the UK market and has received the support from the Commonwealth Secretariat together with the EDB, he said.
In addition, companies would employ designer graduates with the government also focusing on developing the graduate studies, he said.
At present, the industry is making available free access to fabrics in order to encourage young designers to produce garments for commercial produce, Mr. Cooray said. |
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