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Improvement in garment sector orders in first two months of 2024, but still to see 2022 volumes
By Saman Indrajith
The apparel sector has received more orders in the first two months of 2024, compared to the same period in 2023, Deputy Chairman of Joint Apparel Association Forum Sri Lanka (JAAF) Felix Fernando said.
However, one must not forget that last year was a particularly bad year for the sector, he said. “We are still not seeing the volumes we did in 2022. We hope things will improve in the coming months.”
Fernando said 2023 was a bad year for the entire export sector, mainly due to external problems. The war in Ukraine adversely affected the economies in the European Union and there was a drop in the purchasing power of people living in the US and the EU.
“In general, the US imported 22 percent less apparel from across the world. This was about 10 percent in EU countries. We got less orders because of this and a lot of factories reduced working hours and some operated only a few days of the week. This year there is a positive development and factories that focus on some categories have got more orders. Some clients, who used to work only in Bangladesh, have come to Sri Lanka to reduce the risk of importing from one location.”
He added that the demand for items, like underwear, and active wear, has increased.
Fernando said there isn’t a big difference in the production cost of apparel between Sri Lanka and Bangladesh. A few months ago, Bangladeshi manufacturers had to increase the salaries of their workers significantly.
“One of the conditions of GSP+ is that the fabric we use for garments must come from Sri Lanka, another SAARC country or an EU country. The quality of fabrics produced in India and Pakistan are low. For high quality material at low cost, most people go to China, Thailand, Vietnam, Indonesia, or Korea. People feel that it is better to get good quality cheap fabrics from the countries I mentioned than trying to adhere to the conditions I stated. Because of that we only use about 60 percent of the quota given by GSP + concessions,” he said.
Fernando went on to say that one of the main problems they face is the policy uncertainty that prevails in the country and the lethargy the State has shown to ensure market access for Sri Lankan businesses. In the long term the industry must look at enhancing productivity and enhancing the quality of labour.
“We are not a country with a lot of people. So, how do we attract new people to work in the industry? A lot of workers left the country in the last two years to work in Eastern Europe and the Middle East. We must create an environment that’s conducive to their return.”
Fernando said the rupee has appreciated against the dollar in the past few months. However, the cost of living has not gone down and a stronger rupee is bad for exporters.
“We have spoken to senior government officials about our concerns. I think they, especially the Governor of the Central bank, are aware of this. This is why the Central Bank is buying dollars from the market. The appreciation of the rupee is good if the cost of living goes down. If the price for food, transport, etc., goes down, our costs will also go down. However, these costs have not gone down,” he said.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
