Apparel exporters in Sri Lanka are impacted by disruptions of imported raw materials from China. Buyers are slashing orders as the novel Coronavirus (COVID-19) spreads into Europe, which is Sri Lanka’s largest export market. Factories in Sri Lanka are to be closed for a period of two to three weeks, while some are planning to prolong it until the raw materials arrive.
Ships are unable to carry cargo from Chinese ports because there is no cargo to be carried and several trading have been cut from shipping lines from Chinese ports.
The outbreak in China has hit India’s manufacturing and exports of medicines, electronics, textiles and chemicals. India sources about 70 per cent of active pharmaceutical ingredients and close to 90 per cent of certain mobile phone parts from China. Indian businesses are calling for cuts in import duties on antibiotic drugs, mobile parts and other items to help cope with the fallout from the coronavirus outbreak which has disrupted supplies from China. Credit with a backstop facility of guarantee may be offered for companies which have the capability to start immediate production of items that can feed into domestic consumption.