Sri Lanka loses large apparel quota
Free Trade Zone Manufacturers’ Association General Secretary Dhammika Fernando stated that between 30% – 50% of apparel orders have been lost to leading manufacturers in Sri Lanka.
This quota of garments, manufactured under a leading brand name in Sri Lanka for 15 years is now being allocated to Vietnam and Bangladesh by the foreign company. This has lead to the halt in productions in about 15 medium scale apparel companies.The number of garments thus lost to Sri Lanka is about 5 million pieces a year. Even though it may not seem as much, it has a massive effect on small and medium scale factories, he added.
This is due to the economic crisis and unstable government which has made foreign companies nervous about Sri Lanka.
The Russia – Ukraine war which has led to inflation in Europe, and the rise of oil prices in USA, have also resulted in a drop in orders from those countries.
Even though other Asian countries that manufacture garments have to deal with inflation as well, it is not as high as that of Sri Lanka, which the Sri Lankan garment industry believes is the reason for the shift to those countries.
