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Sri Lankan firms can excel without GSP+ facility
Jul '10
According to industry experts, Sri Lankan industries possess the ability to achieve higher levels even without the General System of Preference (GSP+) discount.

Although, GSP+ facility was considered as a bonus for the industries to enter in to the global markets, yet the industries cannot be dependent on the discounts for ever.

The cost of labour in Sri Lanka is comparatively lower as against the East European labour cost, which is 1/10th of the European labour cost. This acts as an advantage as Europe has many manufacturing units.

As of now, Sri Lankan firms should focus on improving their productivity capacity to 85 – 90 percent. Experts aver that, if industries can attain such high level of productivity and also improve quality of their goods, buyers will continue their demands for Sri Lankan goods, even without concession.

With labour costs surging at a fast pace in the East European nations, the probability of investments flowing in to the country are high. Currently, there are about 5,000 job chances within the Katunayake investment promotion zone.

Since a few companies have maintained a high level of productivity, on time delivery and quality, buyers are will to continue with their demands. This, according to experts, is the key step towards developing better links with buyers.

But, currently, firms are finding it difficult to hunt for labourers; the key reason is that, people have still not received their due recognition. Majority of the foreign allowance is due to women working in the Middle Eastern nations and flagship export industries, which has exceeded US $1 billion, in the garment industry.

Although, working women are playing an important role in the economy, their contribution is not recognized as yet.

A jeans manufacturer in Gampaha district has about 50 vacancies, but the employment rate in the district is 99.9 percent. The firm intends to increase its production capacity by next year to 10,000 jeans a day from its current capacity of 8,500 jeans a day.

This jean manufacturing company is currently exploring new markets such as Australia, Middle East nations and China.

Fibre2Fashion News Desk - India

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