Apparel sector targets Rs 3.5 bln revenue

Shirajiv SIRIMANE

Sri Lanka would be targeting Rs. 3.5 billion revenue from the apparel industry, Chief Executive Officer Brandix Lanka Ltd, Ashroff Omar told ‘Daily News Business’ at the Apparel Exporters’ Association AGM, at Galadari yesterday.

He noted the revenue target topped the Rs. 3.2 billion mark last year. “This year is very challenging for the sector not only for Sri Lanka but for other suppliers as well,” he said.

This was mainly due to the economic diminution in US and the slow down of the UK retail sector. “The issue of the GSP Plus is one of the main concerns for the local industry and we hope that this issue would be ironed out soon,” he said.

Omar said the industry must work as a team to overcome this situation. Four Ministers, Rohitha Bogollagama, Dr. Sarath Amunugama, Prof. G. L. Peiris and Mahinda Samarasinghe have been appointed by President Mahinda Rajapaksa to overlook the issue.

He said they were pleased about the manner in which the Government was handling the issue. He said even China is facing problems as the Chinese Government has imposed regulations and tough laws to raise working standards.

President elect, Apparel Exporters’ Association, Channa Palansuriya said he hopes to assist the SME apparel sector this year. “The SME sector has tremendous potential. However they have no window of opportunity to enter the international market and I want to create an opportunity for them,” he said.

The Association is also planning to provide opportunity for the local apparel SME sector to enter the Indian market. “There are openings for niche markets too,” he said.

Palansuriya also said it is clear that some of the conditions such as the import dependence for fabrics, skilled and trained labour, training facilities may remain static for a foreseeable future. The industry as at present has already begun to get the feel of the fierce competition that lies ahead.

“The strengths of the industry are government policies of liberal business environment, educated and trainable labour, adhering to compliances, quality supplies, logistic, location, speedy turn around time, reputation earned by Sri Lanka, reliability, trust and commitment of the people,” he said.

Palansuriya said the major weaknesses of the textile industry are the absence of an indigenous fabric base, the lack of designing capabilities, lower productivity, high concentration on very few markets and finance cost, increasing cost of production, and weakened dollar.

“The US economy is under attack from soaring energy prices, unemployment, a housing slump and an ongoing credit squeeze and suffers its first consumer recession since 1991 when similar conditions prevailed,” he stressed.