Financial Times

Words of wisdom from BOI chairman on garments
Market Sri Lanka as a child labour-free manufacturing base
Sri Lankan garment manufacturers to beat stiff competition from countries like India and China should aim higher and attract buyers by promoting the fact that Sri Lanka doesn’t use child labour in manufacturing, said Prof Lakshman R Watawala, Chairman, Board of Investments last week.

Addressing the Sri Lanka Garment Buying Officers at their 13th Annual General Meeting, he said while the garment industry is looking at strategic ways to improve, each company must work on its own cooperate plans focussing on the future of the garment industry.

In today’s era of globalization, it is essential that the plans should be aimed at achieving best quality products at the lowest, possible cost. He said the government has seriously considered the need to manufacture textiles to reduce the manufacturing time, as the time factor has also become vital in meeting orders. Large textile manufacturing factories that were closed down earlier will be revived to manufacture raw material necessary for the manufacture of garments.

Prof Watawala said these textile-manufacturing factories are also available for the private sector to operate. He called upon the buying offices to find private investors known to them for this exercise and these investors would be eligible to 15-year tax benefits.

Another factor to reduce production cost would be to employ modern technology and to augment the skills of the employees. In the garment industry he said to increase productivity the skills development of the workers is important, he said.

Romesh Fernando, Deputy Chairman, SLGBOA, making a presentation on “The role of buying in a dynamic environment” said they are confronted with the daunting task of moving the industry forward to meet challenges like increasing production capacities, finding ways of increasing the apparel labour force, embracing technology, promoting the grant of fiscal incentives and grooming a breed of aggressive, professional marketers to drive the front-end.
Unlike earlier, with the heavy competition from other countries, prices now must be worked out and quoted within 24 hours. Mr. Fernando said the response time is very important and therefore product development must be turned around fast.

He said there is resilience and growth in the garment industry despite the setbacks in the ‘conflict’ periods of the 1980s and 1990s. The industry has made a tremendous effort and has not only been selling the apparel-producing capability but also Sri Lanka as a reliable sourcing destination.
He said the global networks; marketing exposure and expertise have driven the industry forward in areas like technology, design, creativity, and importance of productivity, competitiveness and positioning. The vision has been to make the apparel industry a hassle-free one to drive it towards a ‘preferred’ sourcing destination. Mr. Fernando said however the industry has failed to attract all major buyers to Sri Lanka in the country’s bid to be the hub for South Asian production.

To make Sri Lanka such a hub the next five years would be crucial. He said fiscal incentives should be offered to attract more large and small buyers, to look at Sri Lanka as the gateway to Asia and set up operation hubs in this country. The buyers should be encouraged to locate here, he said adding that Sri Lanka has no alternative but to open and compete in the world market to survive and grow faster by taking advantage of global markets and advanced technology.

Back to Business