Implement LLRC proposals- urge garment exporters
Sri Lanka’s apparel industry, struggling against an economic crisis that has hit its main buyer – Europe -, is urging the government to implement recommendations of Sri Lanka’s post-war reconciliation commission in a bid to regain GSP concessions from the European Union (EU).
This comes in the wake of a leadership change within the apparel exporters’ body that took place last Monday during its AGM.
Newly appointed Sri Lanka Apparel Exporters Association Chairman Yohan Lawrence speaking with the Business Times said they were hoping to regain the GSP plus concessions as the “size of the market that we have lost – it is not possible to replace it overnight.”
He hoped to engage with the government to ascertain whether they intend pursuing its commitments to the Lessons Learnt and Reconciliation Commission (LLRC) recommendations.
However, to date there has been no move by the government of re-applying for GSP concessions from the European Union (EU), he said.
Sri Lanka lost trade concessions to the EU in 2010 following allegations of human rights violations during the war and lack of adherence to labour rights.
In the face of these challenges the industry is still working out ways to overcome the current drop in exports. “We are looking at what we can do – it’s a work in progress,” he said uncertain of the future and unaware of how to face it.
But the after-effects of this were echoed by some in the industry to be the reason for the drop in exports; though the new head was uncertain if it was also due to simply poor trade due to the current EU financial crisis.
Mr. Lawrence in fact proposed at the AGM for bilateral trade agreements with selected markets but speaking with the Business Times he noted this needed to be carried out following a careful study of the respective countries and their realistic potential.
But the onus is on Sri Lanka today to remain competitive as countries like Myanmar are opening up and were eyed by the local apparel industry manufacturers as well.
The new industry head observed that exploratory missions were undertaken by members of the local industry (to Myanmar) to ascertain the opportunities and potential there.
It was pointed out that moreover, Myanmar would be likely to steal the shine off of Sri Lanka once it opens up and is likely to get trade concessions.
Mr. Lawrence has once again raised the issue of restructuring employee wages in order that the minimum wages would specify not simply the basic wages but also the productivity element, which he says was not reflected in today’s salaries.
Employees in the garment industry would be offered a 30 per cent salary increase in line with the Wages Board as well, he said.
In addition, an increase in the number of hours stipulated were called for from the current legal requirement for 45.5 hours to 48 hours per week as was the case in countries like Bangladesh, Cambodia and India.
Moreover, manufacturers would want new additional shifts required to increase the work flow and in return offering employees a day off during the week.
In this regard, they hoped “for flexibility of the fixed weekly holiday for the trade,” he said.
With earnings at US$2.8 billion by end September, Sri Lanka’s apparel exports were down by at least 7 per cent compared to last year with the biggest drops being from the EU by 10 per cent and nearly 6 per cent for the US.
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