Apparel industry building back on surge in orders
Sri Lanka’s apparel industry is currently building back capacity as they are on a recruitment drive with the slow surge in orders that is likely to continue into 2025.
At present the order books are healthy, Joint Apparel Association Forum (JAAF) Spokesman Yohan Lawrence told The Sunday Times Business highlighting that they are currently building back capacity by increasing the number of workers based on the orders coming in.
“We are not foreseeing a massive increase,” he said adding that earnings are likely to see a marginal increase to US$4.6 billion in 2024. This year by the end of October earnings have reached around $4 billion.
The reason for the slow surge is due to the fact that demand increased in the last few months although the purchasing power among consumers in the US, UK and European markets is still at a low.
Meanwhile the strengthening of the Sri Lankan Rupee has also created an impact on exports as prices continue to become an issue due to this reason.
In the last 12 months while Bangladesh has seen a devaluation of their currency by about 10 per cent Sri Lanka on the other hand has observed a strengthening of the rupee by the same amount, the spokesman said.
Currently in this respect remaining cost competitive compared to their global competition has become a main issue at present, Mr. Lawrence said.
In the meantime, he noted that Sri Lankan factories located in Bangladesh are not facing any issues inspite of the concerns raised from time to time in Indian media highlighting the concern for safety particularly in apparel factories.
Commenting on the newly elected US President Donald Trump’s policy stance to impose increased tariffs on Chinese imports and the possibility it could mean a shift in increased demand for goods from other countries like Sri Lankan in terms of garments, he noted they need to wait and see.
It was pointed out that while the US would impose these tariffs it would directly impact the US consumer that will be burdened with having to pay more.
Mr. Lawrence also noted that it also depends on how China reacts to this new policy by the US.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!