PPE orders to run out by September
Job losses in the apparel sector are likely to continue with no visibility for PPE orders from September onwards.
Sri Lanka just started receiving orders for the manufacture of Personal Protective Equipment (PPE) and face masks in the wake of the growing need for these amid the COVID-19 pandemic.
“A lot of big players have received orders for PPE but we feel it will continue for the short term and will peak as these are only until September/October,” Joint Apparel Association Forum Chairman A. Sukumaran told the Business Times.
“Until September/October we have received orders,” he said noting thereon “we have no visibility” as yet as orders may come later.
Following the agreement to reduce workers’ wages by half companies will not allow for terminations but job losses continue in the form of Voluntary Retirement Schemes (VRS).
Discussions are still ongoing on the possibility of reducing the compensation granted for workers in case companies want to reduce the workforce by termination of employment, Mr. Sukumaran stated.
With a 30 per cent drop in production expected this year the companies believe at least 100,000 jobs will be lost amid the COVID-19 pandemic.
Meanwhile Sri Lanka Apparel Exporters Association (SLAEA) President Rehan Lakhany noted that the real challenge would start from September when the orders for PPE and masks run out as orders are not coming in as before even for this category of garments.
He stated that the May export figures had indicated that there has been a 49 per cent drop compared to the same period last year and year to date numbers of January to May 2019 compared to this year showed a drop of 32 per cent.
He noted that opportunities are likely to come through by January 2021.