Apparel sector aims at $5b target

By Sanjeevi Jayasuriya

Rohan Abeykoon

The apparel sector will aggressively pursue the target of $ 5 b set to be achieved by 2015.“We have studied the Turkey model which we believe is a good system to benchmark given the level of trade they enjoy inspite of costs thrice as high as prevalent here,” Apparel Exporters Association, Outgoing Chairman Rohan Abeykoon said.

They too have an industry based on a higher percentage of small to medium units operating in the industry supported by large front end business’ and use their services to promote the business in that country, he said.A valuable business model was looked at by the industry to begin 100 new SME units of 100 machines only with new entrants, but it appears that this idea has not garnered official sanction.

This is a step in the right direction to get the critical mass of manufacturers in the country and also to open new entrepreneurship with fresh thinking, energy and drive, he said at the Apparel Exporters Association AGM last week in Colombo.

“We are drawn into a model which seems to be based on an uneven playing field and thereby its sustainability becomes questionable.

The field consists of competing manufacturers who thrive on low cost or depend on local subsidies and free trade agreements.”

“As manufacturers in Sri Lanka we find ourselves outside this matrix so the only options left for us is to focus on our skill in business and service strengths,” he said. The industry has to compete on service, delivery, quality, reliability and innovation and therefore this is where we need to channel all our energies.

The industry think tank interestingly is now mooting a new course. It appears that inexperienced decision makers, infeasible production techniques, a lack of right mindedness and general drive are some of the reasons for which we find ourselves positioned today.

“To sustain the industry, growth needs to be coupled with inclusiveness over long periods. Inclusiveness means opening out the benefits of development and growth to more players not just a few.

We need to build a model based on more new entrants and encourage and support the development of the SME sector in this industry,” Abeykoon said.