Sri Lanka unlikely to become competitive nation in 2023
Sri Lanka is unlikely to become a competitive nation to produce garments if a further price hike in electricity tariffs is carried out next year.
FTZ Manufacturers’ Association Secretary Dhammika Fernando said that going forward if there is a further increase in electricity charges next year it could mean that the country will not become competitive alongside other regional players.
The association is said to have met the Public Utilities Commission of Sri Lanka on Tuesday to indicate to the relevant authorities the need to ensure that they do not increase the electricity tariffs as it would adversely impact the industries and in particular the apparel sector as well.
Sri Lanka’s industrial rate of electricity charges are currently above Vietnam, Nepal, Assam in India and Bangladesh and Bhutan and even some parts of Canada, he noted.
However, Sri Lanka seems to be on part with the likes of destinations like Kerala and Malaysia, he said.
In this respect the country’s industries do not have a competitive advantage in electricity.
Mr. Fernando also highlighted that the apparel industry has recorded a drop of 8.9 per cent drop in earnings in November this year compared to the same month in 2021.
The cumulative figure from January to November is at US$5.1 billion which is a 12 per cent increase compared to $4.6 billion in 2021.
Meanwhile, December is likely to generate similar earnings to that of November with a reduction of about
10 per cent.
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