Women: 70% of Lankan apparel workers:

WB pushes apparel sector expansion

While Sri Lanka has been successful in establishing and growing its apparel manufacturing industry, more can be done to realise its potential as a regional hub and to continue to boost opportunities, especially for women and the poor, according to a new World Bank report.

The report, Stitches to Riches: Apparel Employment, Trade and Economic Development, launched in Colombo last week is aimed at demystifying the global, South Asian, and Sri Lankan apparel markets, estimating the potential gains in exports and jobs (including for women), and identifying policies that can unleash Sri Lanka's export and jobs potential compared with those of their closest competitors in the Southeast Asia including Vietnam, Cambodia, and Indonesia.

"Apparel manufacturing not only has a huge potential for creating jobs, particularly for the poor but also attracts female workers. Employed women are more likely to create positive social impacts as they tend to dedicate their income to the health and education of children," said Country Director, World Bank Sri Lanka and the Maldives, Françoise Clottes.

"The report has significant messages for Sri Lanka and highlights broad opportunities that the industry provides in terms of sound jobs for women, as well as recommendations that could help the industry increase competitiveness and make Sri Lanka a regional hub and example for other South Asian countries," the Country Director said.

Clothing manufacturing has a lower barrier of entry than many industries and creates jobs that often pay better than alternatives such as agriculture. In Sri Lanka, the average apparel worker earns more than $120 per month, on average, compared to $80 per month for those working in agriculture. Over 70% of apparel workers are women compared to less than 30% in other industries.

Accounting for $4.4 billion of its exports, Sri Lanka's apparel sector outperforms other South Asian countries in terms of quality, lead time, reliability, along with social compliance and sustainability.

As China gradually scales back its apparel manufacturing, Sri Lanka stands to gain market share, but not as quickly as some Southeast Asian countries. Comparisons reveal that its apparel prices are higher than competitors, but Sri Lanka produces more sophisticated products, though there is room for improvement on lead times and product range and availability.

Report co-author and a Lead Economist for the World Bank, Gladys Lopez-Acevedo said, "Competition is increasing in the global apparel market with buyers moving towards greater consolidation in sourcing decisions and the impending approval of the Trans-Pacific Partnership."

"Sri Lanka should seize this opportunity and implement policies to become a regional leader in creating good jobs, bringing more women into the workforce and diversifying its products and end markets to increase skills and value," she said.