Apparel orders for 2024 continue to look bleak
Sri Lanka’s apparel manufacturers are still facing a drop in orders and buyers are still not keen on increasing the purchases from Colombo; as a result 2024 looks as bleak as this year.
The 20 per cent drop in orders continues and manufacturers are not receiving any increase in the orders, Joint Apparel Association Forum (JAAF) spokesman Yohan Lawrence told the Business Times. “Next year is looking the same as this year,” he said adding that no increase in orders is expected.
“At the moment things are looking quite tight and though there is no further decline in orders there is also no real signs of improvement,” he said. Sri Lanka is facing a tough challenge in selling its garments to Europe due to the high costs as a result of which the country is facing a crisis in terms of competitiveness. While the high costs of energy and water and other utilities are pushing out any new purchases Sri Lanka is also faced with the concerns of the rules of origin.
The rules of origin effective from the EU and the UK are a concern for manufacturers as Sri Lanka continues to purchase raw materials from other markets like China.
Despite the industry’s interest in attracting new investors to a recently established textile manufacturing zone in Batticaloa there seems to be little interest from textile manufacturers to commence operations in the country.
“Right now no one is interested due to the processes involved in obtaining approvals in commencing operations,” Mr. Lawrence explained.
He pointed out that only one investor has signed up to set up a textile manufacturing plant in the newly established zone.
However ever since signing up a year ago the approvals to commence operations are continuing, it was noted.
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