Sri Lanka Retailers’ Association urges landlords to cut rental costs
View(s):The Sri Lanka Retailers’ Association (SLRA), the apex body for organised retail in Sri Lanka, engulfed by restrictions on retail business due to the pandemic, is urging landlords, lessors, and business partners to reduce leases and rentals for the association’s membership.
In a statement, SLRA President Murali Prakash appealed to landlords and lessors to provide a 50 percent concession on rentals/ leases for the next six months on properties leased and rented by SLRA members.
Many retailers are suffering losses due to the prevailing situation in the country caused by the COVID-19. The current (third wave) impact supersedes the previous lockdowns in terms of the effect on retail businesses.
“The pandemic and the resultant lockdown have substantially reduced retailers’ operability, given the higher costs, drastically reduced revenues, and cash flows. This has resulted in large losses causing a significant dent in their ability to operate efficiently, with some even struggling to stay afloat. We believe the landlords, lessors, and other business partners would share part of the costs through reduced rentals and other cost-sharing options; thus, together, we navigate to create a better tomorrow.
We understand the impact this would have on the lessors and landlords.
However, the industry needs to stay afloat for all parties to benefit in the future, and therefore we believe collective action is the way forward,” the statement said.
Further, the association appealed to authorities to consider special relief on loan repayments and other concessions on utility and trade levies, especially for smaller retailers, given the unprecedented externalities inhibiting regular business. Retailers have stood the test of time supporting the local economy during good and bad times, and this is an exception where they need support from the authorities.
The SLRA currently represents nine sectors in the retail industry, namely FMCG; Clothing, Fashion & Jewellery; Shelter & Housing; Household & Consumer Durables; Footwear & Accessories; E-Commerce; Mobility; Entertainment, Restaurant, and QSR; Healthcare and Wellness.