The Fabric and Apparel Accessories Manufacturers Association (FAAMA) has urged the Government to give due recognition for its growing value addition to the economy and foreign reserves as required support can help tap a $ 2 billion business opportunity faster
This key sub-sector of the $5 billion apparel industry has grown to account for $ 800 million up from $500 million a few years ago.
With imported raw materials amounting to $ 3 billion annually, FAAMA believes the local industry can significantly enhance its contribution with the right support and policies.
The raw material component of the apparel industry is 65 per cent. The import value of $ 2.8 billion signifies a huge gap and equally an opportunity. Whether Sri Lanka can locally produce the entire raw material requirement locally is a challenge and could take a long time. However, local manufacturers have progressed satisfactorily so far after much sustained effort, said Pubudu de Silva, President, FAAMA
He said the fabric and accessories segment has added a value of nearly 50 per cent to the apparel industry. Additionally, customers are preferring in-country sourcing by their suppliers/producers as part of efforts to manage the rising logistics cost as well as lead time. This dynamic certainly helps local manufacturers of fabric and accessories. “
Given these compelling factors there must be unwavering support to fabric and accessories manufacturers to further enhance their contribution which will benefit the country substantially. Apparel industry, including fabric and accessories, must receive a similar thrust or priority like for tourism or ICT,” FAAMA President emphasised.
To expand the local manufacturing, several new initiatives have been made, including the establishment of a dedicated Eravur fabric park in the Eastern Province, which FAAMA welcomed.
However, FAAMA is of the view that a broad infrastructure plan aligned to industry growth forecasts and goals will help. A level playing field in terms of cost as against overseas competitors is also important, it said.
