Retailers’ Association seeks support from state against collapse
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A retail store in Colombo
Sri Lanka Retailers’ Association (SLRA) is urging state support for the industry and for a consultative approach when taking national lockdown decisions – especially at short notice, as the sector has witnessed mounting multi-million-rupee losses overnight due to ad-hoc measures.
In a statement, the SLRA stressed that implementation of COVID-19 controls should not affect the continuity of the retail sector.
Sri Lanka’s Organised Retail Sector (ORS) plays a significant role as a collective voice within the Sri Lankan market, SMEs and employment provision. It accounts for around one-third of the GDP and over 15 percent of employment in the country.
Hussain Sadique, Founder / President of SLRA emphasised on the importance of retail ecosystem’s functioning. “Modern retail has come to stay in Sri Lanka. The retail industry contributes billions to the Sri Lankan economy and supports nearly one million direct jobs and many more indirectly. This sector is a major system for Sri Lanka’s youth employment and helps address the burden of youth unemployment. It is also a key industry on the frontline of the COVID-19 crisis. This is the time that the support of the government to ORS is to be channeled. By investing to preserve this sector now, far worse social consequences would be prevented later on,” he stated.
“We are collectively calling for support measures that will enable the ORS to weather the worst of the crisis and be in a position to make a meaningful contribution towards economic recovery. The lockdowns implemented without consulting ORS has a very negative impact on it. No other country closes retail systems and supermarkets during a COVID-29 lockdown but implement them along with controls such as self-distancing. Due to non-consulted lockdown announcements, perishable stocks in ORS are destroyed overnight with multi-million-rupee losses and affecting the suppliers while retailers’ staff retention and turnover too has become very problematic. Demand in retail sub sectors such as ‘consumer durables’ has increased since more consumers are now staying at or working from home and lack of consultation with ORS in lockdowns hampers their deliveries too,” he added.
SLRA representatives stated that allowing the retailers to operate even during lockdown periods with pre agreed guidelines, would greatly relieve the consumers and families across the country that otherwise would face crisis to sustain their very lives. To overcome the heavy financial losses from ad-hoc lockdowns and rupee devaluation, the ORS requested the government for a reduction in VAT and a reduction in utility tariffs such as electricity which would greatly support the distressed retailers and also help them to transfer such cost benefits to the valued customers.