Home / Knowledge / News / Apparel/Garments / Sri Lankan apparel sector loses $1bn without GSP+
Sri Lankan apparel sector loses $1bn without GSP+
25
Oct '12
Withdrawal of the GSP Plus facility extended by the EU to Sri Lanka has caused the Sri Lankan apparel industry to lose around US$ 1billion in exports to the EU markets, Rohan Masakorala, former Secretary General of the Joint Apparel Association Forum (JAAF) has said.
 
He said though it has became apparent that the GSP Plus loss is badly hitting the 30-year-old domestic apparel industry, the Sri Lankan Government is still sticking to the view that removal of the facility has not impacted the industry much. The worse part, he said, is that in spite of recognizing the dire need of the facility, Sri Lankan Government is not keen on re-applying for the same. 
 
Speaking at the technical sessions of the Sri Lanka Economic Association’s Annual Sessions 2012, he said the sector did not feel the pinch of withdrawal of the facility so much during last year, as problems in China and Bangladesh forced importers to source from Sri Lanka. However, the conditions are no more the same, he added.
 
While Sri Lankan apparel exporters are continuously been advised to explore new markets, Mr. Masakorala said it is not all that easy. Particularly, it is quite difficult to gain entry and retain a foothold in Indian and Chinese markets.
 
However, the Sri Lanka apparel industry can still keep itself afloat as it has capability to produce and supply goods on demand more speedily as compared to Bangladesh, but for this too, it requires GSP Plus facility and needs to improve its labour productivity, he added.
 
He said through the GSP Plus facility they are not seeking any concessions, but are ensuring a level playing field in one of the country’s key markets.
 
He further noted that in absence of the GSP Plus facility, which has led to increased competition, enhancing their supply chain efficiency could help Sri Lankan apparel producers to retain their share in the EU market.
 
Loss of the GSP Plus access to the EU markets in August 2010 caused several Sri Lankan apparel firms to close down, as cost of doing business increased significantly.
 
Mr. Masakorala cited an example of a Sri Lankan apparel manufacturer, who was required to invest additional € 25 million to be able to ship products to the EU post GSP Plus loss, but preferred to utilize the sum to move the company’s operations to Vietnam, as it is much easier to export from there.
 

Fibre2fashion News Desk - India


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Top executives
Textile & apparel bodies

The decision is transformational

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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