Home / Knowledge / News / Apparel/Garments / Tough times loom on Sri Lankan garment sector
Tough times loom on Sri Lankan garment sector
09
Oct '12
Tough times seem to be looming on the Sri Lankan garment sector as European Commission (EC) has forewarned of a further decline in value of Sri Lankan rupee in terms of US dollar.
 
Additionally, the Sri Lankan garment exports have now started feeling the pinch of suspension of the EU’s Generalized System of Preference (GSP) Plus trade facility.
 
Roshan Lyman, Head of the European Commission trade delegation, said withdrawal of the GSP Plus facility did not impact Sri Lankan garment trade initially, as owing to civil unrest in Bangladesh European buyers had no option but to buy Sri Lankan apparels. However, the domestic industry has now started feeling the real impact of suspension of the facility.
 
Speaking at a seminar held by the EC to ponder on the Eurozone crisis and its impact on the Sri Lankan economy, Dr. Dilesh Jayantha, Economic Advisor to the European Chamber of Commerce, cautioned that over the next six months the exchange rate is likely to stabilize at around Lk Rs. 138 per one US dollar. In comparison, the dollar traded at around Lk Rs. 114 at the start of the year.
 
Dr. Indrajit Coomaraswamy, a former Director of Economic Affairs Division at the Commonwealth Secretariat and also an ex-employee of the Central Bank of Sri Lanka and the Finance Ministry, also supported Dr. Jayantha’s statement. 
 
Sharing his views on ongoing development in the money market, Dr. Coomaraswamy condemned recent issuance of an international bond and said that efforts to stabilize the exchange rate through state intervention and by inviting international borrowings would have its own implications.
 
All the three experts emphasized that concrete measures were inevitable for putting the Sri Lankan economy back on track.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 29th Apr 2017

EU rules needed to curb textile worker exploitation: MEPs

European Union (EU) rules are needed to oblige textile and clothing...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X