Made in Sri Lanka expensive for international retailers
International buyers Marks and Spencer, NEXT and Tesco are on the lookout for cheaper markets as the Sri Lankan apparel companies feel the impact the loss of GSP plus concessions this year with falling exports.
MAS Holdings Director Ajay Amalean told the Business Times, in the wake of the European economic crisis, that European buyers are becoming price conscious and the fact that ‘we have lost’ GSP plus concession has had an impact for manufacturers exporting to this bloc.
“The more price sensitive products will go to cheaper countries and Sri Lanka will need to focus on the top end customers who appreciate and value good manufacturing from ethical and compliant factories,” he said.
In this respect, he asserted the international buyers were looking to balance it out by buying from cheaper markets. “I’m not sure we will get it (GSP plus) back again,” Mr. Amalean said on the sidelines of a scheduled visit to their Panadura factory recently.
In the wake of the loss of the GSP plus concessions it was found that the industry was feeling its effects this year. Sri Lanka Apparel Exporters Association Chairman Rohan Abayakoon also made similar comments in an earlier interview with the Business Times. Currently, he pointed out Sri Lanka is 10-15% more expensive than its regional competitors.
Sri Lanka lost trade concessions based on the GSP plus programme in August 2010 from the EU after the latter raised issues pertaining to human rights violations in the country.
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