Facing the nation: The ‘Good, Bad and the Ugly’ of GSP +
Sri Lanka’s ‘big boys’ (industry) are ready but are small and medium scale garment manufacturers prepared for and able to take advantage of the return of GSP + with all the required paraphernalia including upgraded technology? Prof. Lakdas Fernando the Chairman Sri Lanka Apparel Institute, posed this question during a recent media conference at the Ramada Colombo. Speaking during the launch of the Apparel Industry Suppliers Exhibition (AISEX) exhibition to be held at the Sirimavo Bandaranike Memorial Exhibition Centre on June 9-11, he viewed GSP + as a double edge sword that would on one side help the industry albeit in the short term while hurting the competitive edge of the small and medium scale industry on the long term.
“We don’t have 100 per cent control over GSP +. The European Union can give it to us and also take it away. GSP + certainly has more benefits to the buyer than to manufacturers owing to duty free concessions.” The plus point, he pointed out, is that because of GSP concessions, buyers would come to the country. “But are we ready for GSP +?” he said, adding that this is the big answer and that “unless we upgrade SME’s with new technology we will be nowhere”. The government should help SMEs which is the back bone of the country, he added. Sri Lanka’s apparel export industry, a significant contributor to the Sri Lanka’s economy, has grown phenomenally during the past three decades.
The industry provides direct employment opportunities to over 300,000 people and that includes a substantial number of women. The local garment industry is now moving towards the fashion industry from being a manufacturing industry. Dr. Nirmale de Silva, Course Designer of the Degree programme at the University of Moratuwa, said that India in the recent past has been buying Sri Lankan garments such as lingerie. Although India has many international designer labels they still prefer Sri Lankan garments.
I do not think that we have tapped the India market correctly but there is a lot of opportunity for upmarket branded fashion. There is a demand for the top segment of the market.” AISEX will is supported by the Sri Lanka Apparel l Institute (SLAI) along with Joint Apparel Association Forum (JAAF), the Ministry of Industry and Commerce and Sri Lanka Institute of Textile and Apparel. Organisers said they expect officials and personnel from 280 local factories to visit the exhibition.