Sri Lanka’s ongoing crisis is leading to a loss of 10-20 per cent of orders that are being diverted to India and Bangladesh, warns Felix Fernando, Joint Apparel Association Forum.
As per a Tamil Guardian report, major brands have had to meet with buyers in recent weeks to reassure them that the ongoing unrest in the country would not disrupt their orders.
According to a report by the Export Development Board, Sri Lanka’s apparel and textile turnover increased by 13 per cent Y-o-Y to $1.9 billion between January and April 2022. However, the country may not be able to sustain this if it fails to restore buyers’ faith
The situation may further worsen by concerns of a coming global recession which would further dampen the buying power of apparel buyers and badly damage Sri Lanka’s export sector.
Fernando noted that road closures due to protests had caused difficulty for apparel companies in getting their workers into the factories leading to missed deadlines. However, he notes that trade unions have recognized the seriousness of the challenge and have not taken to strikes. Fernando further states:
