Bangladeshi garment manufacturers plan to tie up with their Sri Lankan counterparts to add more value to the garment supply chain and reduce the lead time by at least 10 days. Under this agreement, the Bangladeshi garment manufacturers will send the basic items to different garment factories in Sri Lanka for finer washing, remaking and adding more value as Bangladesh has abundance of work orders now.
After remaking and finishing of the goods, Sri Lanka will ship them off with the 'Made in Bangladesh' label to different European markets from their deep sea port. This will cut the lead time by at least 10 days due to proximity of the Sri Lankan deep sea port to Europe.
Any kind of garment products can be sent from Bangladesh to Sri Lanka to be re-exported.However, Bangladeshi garment makers will primarily send the items that the local manufacturers are particularly not strong at. For instance, Sri Lanka has an edge in innerwear, so if Bangladesh gets a lot of work orders for them, they would be sent to Sri Lanka for further value addition.
Currently, Sri Lankan's market share in global apparel trade is 1.2 percent and Bangladesh's stake is 6.5 percent. The country exports nearly $5 billion worth of garment items in a year while Bangladesh's export last year hit $30.61 billion.