The apparel industry of Sri Lanka has been able to maintain
its steadiness and mitigate the impact of recession on the economy by its
satisfactory performance in the first quarter of 2009. While Apparel Industry
expresses its satisfaction over its performance it acknowledges that it was due
to timely action taken by the Government with necessary macro policy adjustment
measures, providing relief by implementing proposals announced in the Budget of
2009 and putting in place Export Development Rewards Scheme that enabled
Apparel Industry not only to be competitive but also record a growth in exports
in the first quarter of 2009.
The total exports of apparel in the first quarter of 2009
was US$ 801.3 million compared with US$ 736.2 million in the previous year thus
recording an overall growth of 8.8%. Although exports to the US recorded 4%
decline in January-March 2009 with exports recording US$ 346.3 million compared
to US$ 360.9 million in the previous corresponding period, exports to the EU
increased to US$ 404.4 million in the first quarter 2009 compared to US$ 336.0
in the previous corresponding period, recording a high positive growth of
20.3%.
The performance of the apparel sector in the first quarter
of this year should be viewed in the background of all major exports markets of
Sri Lanka are in recession and with the export sector facing many challenges
both Internationally and Domestically and many other exports sectors of the
economy not been able to maintain their previous levels of exports.
The many contributory factors which enabled Apparel Industry
to perform satisfactory include removal of surcharge on electricity, reduction
in cost of furnace oil and implementing other measures announced in the Budget
of 2009. The timely announcement of Export Development Rewards Scheme by the
Government and putting in place an implementation structure enabled Apparel
Industry to maintain its competitiveness and prevent their major buyers
shifting to our competitor countries. The recent adjustment to exchange rates
for which the apparel industry has been making representation has also had its
desired positive impact.
The membership of Sri Lanka Apparel being the major contributor to
foreign exchange earnings of the country accounting for 43% of total export
earnings, wishes to express its deep appreciation to HE the President Mahinda
Rajapaksa for his far-sightedness in taking necessary macro economic measures
and implementing Export Development Rewards Scheme for the benefit of the
Industry at a time Sri Lanka is faced with challenges of fighting ruthless
terrorism of the LTTE. The Sri Lanka Apparel also wishes to convey its gratitude to Hon.
Basil Rajapaksa, M.P and Special Advisor to the President, for the initiatives
taken by him to address and resolve many issues affecting the Industry, which
immensely contributed to performance of the Apparel Industry. The contribution
made by Prof. G.L. Peiris, Minister of Export Development and International
Trade for putting in place administrative structure for implementation of EDRS
and initiatives taken to find new exports markets, as well as support and
assistance provided by Hon. Kumara Welgama, Minister of Industrial Development
for implementing many programmes are acknowledged with appreciation. The Sri Lanka Apparel
also take this opportunity to thank all other Government institutions for their
contribution which enabled our members to perform.
The Sri Lanka Apparel
members are acutely aware the challenges they have to face as major
International export markets are still in recession. The Sri Lanka Apparel is confident
working in partnership with the Government our members will be able to continue
to maintain its exports performance.
