Apparel industry will maintain growth momentum

By Sanjeevi Jayasuriya

Sri Lanka’s apparel industry has shown continuous growth over the years, Joint Apparel Association Forum, General Secretary Tuly Cooray told Sunday Observer Business.

An export centric agenda and a favourable policy framework will pave the way for the apparel industry to maintain the growth momentum while retaining the number one slot in export revenue generation, he said.

The industry will be in a position to achieve the targeted export value for last year. Exports for the first eleven months of the year recorded a value of US $ 4,302.4 million. The target set for 2014 was US $ 4.8 billion.

"Our target is to become a five billion dollar industry this year and we are confident of achieving it," he said. Sri Lanka is no longer a mass producing country.

"We are striving to become an industry benchmark such as China and Turkey. Our production quality and standards are far superior to many other countries.

Two major markets for our products, the USA and EU, account for around 85 percent of total exports," Cooray said.

"However, our share in the USA and EU market is below two percent at present. There are ample opportunities to increase the market share of these traditional markets.

At present the country does not enjoy any concessions and it is necessary to enter into new trade partnerships," he said.

Wheels have been put in motion in this regard and will bear fruit within the next two to three years and afford favourable conditions for local apparel exporters, Cooray said.

"We need to lobby to re-gain the GSP+ concession from the EU to grow our market share.

The measures in place will result in increased export volume and value while being competitive in the global market," he said.

"Sri Lanka also exports apparel to Japan, China, Russia and Brazil which accounts for 12 percent of total exports.

We have improved on our buyer solutions as today, unlike in the past we provide them with the total solution," Cooray said.

"With more concessions from emerging markets, Sri Lanka’s apparel industry could sustain over 12 percent growth on a year-on-year basis," he said.