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| Sunday, 18 August 2002 |
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Apparel exporters appeal for govt. assistance The Sri Lanka Apparel Exporters Association (SLAEA) has appealed to the government to reconsider the imposition of the Port and Airport Development Levy (PAL) on all imports for re-export and make arrangements to refund all payments made to date. Chairman SLAEA Ranjan Cassiechetty said that PAL was introduced by the 2002 budget and was reduced to 0.75 per cent from one per cent after representations. "Imposing the levy at a time the industry is facing a crisis and fighting to survive could affect the industry adversely and be counter-productive," he said. controlling the cost of production is also important to remain competitive. Therefore, the government should critically examine the increasing cost of utilities and services if the garment industry is to remain competitive, he said. "We are pleased that the government has taken positive steps to amend obsolete laws in regard to the termination of employment and overtime limitations, this will make the industry globally competitive," he said at the Annual General Meeting of the Association. He also appreciated the steps taken by Prime Minister Ranil Wickremesinghe and Minister of Enterprise Development, Industrial Policy, Investment Promotion and Constitutional Affairs Professor G.L. Peiris in commencing negotiations to obtain duty concessions from USA and the European Union for garments. He said that 2001 was a turbulent year for the industry due to the attack on the Bandaranaike International Airport and the events of September 11. The September 11 attack affected the economies of Sri Lanka's major trading partners. Therefore, the apparel industry faced a reduction in orders and lower unit prices. The export turnover dropped for the first time in 12 years. The turnover in 2001 was US$ 2.4 billion while it was US$ 2.7 billion the previous year. This trend has continued in the first half of 2002 with a decline of 20 per cent over the corresponding period of 2001. "The crisis facing the apparel export industry must not be ignored. Therefore, we appeal to the government to give whatever relief it can possibly offer to tide over the crisis," urged Cassiechetty. |
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