Sri Lanka apparel exports depend on high quality garments, says top official
While market access for Sri Lanka’s apparel exports, is not that easy now with some drawbacks in the European Union, unlike countries like Bangladesh and Vietnam for instance which have preferential treatment, Sri Lanka has to depend on high quality and value added products, a top export official has said.
This comment was made by Saif Jafferjee, newly elected chairman of the Sri Lanka Apparel Exporters Association (SLAEA) to the Business Times on the sidelines of the association AGM held in Colombo last week.
The good quality of Sri Lankan garments was further exemplified by Chief Guest at the event, Alexander Karechava, Russian Ambassador in Sri Lanka, who – during his speech – made an exceptional complement on the high quality of Sri Lankan garments, when he pulled out a white shirt and exhibited it.
He told the audience, that, that shirt was bought 44 years ago for his wedding and it was made in Sri Lanka and this shirt is as new as it was bought and that speaks of the high quality of Sri Lankan garments that have been exported.
Yohan Lawrence, outgoing Chairman, SLAEA, in the association’s annual report said that two years ago when he took over as Chairman, exports at the end of September 2012 were US$2.8 billion while the year ended with $3.8 billion.
As at September 2014 it was $3.5 billion and hopefully the year would end with $4.8 billion. He said that their aim by 2020 is an earnings target of $8.5 billion.
He said that in the past the association has achieved many things and the Gazette notification 1842/16 on curtailing of Anti-Competitive Trade Practices is the result of nearly 17 years of work across various parties.
He said that it was the late Lyn Fernando who brought this matter to the notice of the association and it is significant that after 10 years of his demise this has finally been resolved. He said “This legislation gives both transparency and accountability”.
Mr. Lawrence said that there are still some teething problems on the delivery orders on import cargo and not all importers are fully aware of the new regulations resulting in overcharging by certain service providers. He said that they would encourage importers to use registered service providers and to refer to the website of the Director General of Merchant Shipping for a comprehensive list of approved delivery order charges for each service provider.
Mr. Jafferjee said that they are now moving to larger market in China, India, Japan and Russia and Brazil and noted that they are hopeful that the government would conclude the China-Sri Lanka Free Trade Agreement next year and that would open several new growth opportunities for branded product exports.
While initial exports began to Russia,Sri Lanka now has a world-class industry that has created a world class product for the past decade. But due to tariff and non-tariff barriers the penetration of Sri Lankan apparel exports to Russia has been disappointing, and stand at less than 1 per cent.
Mr. Jafferjee requested the cooperation of Russian Ambassador to promote apparel sales to Russia under a preferential trade arrangement.