Home / Knowledge / News / Apparel/Garments / Sri Lanka can gain from China's apparel exodus
Sri Lanka can gain from China's apparel exodus
15
Jan '16
China's pain could be Sri Lanka's gain. The supply side of the Sri Lankan apparel sector has a chance to grow following the exodus of apparel companies from China, an expert said at the Sri Lanka Economic Forum 2016.

An initiative of Prime Minister Ranil Wickremesinghe, the event was sponsored by George Soros, founder and Chairman, Open Society Foundations.

“China is still about a third of the world's exports of apparel, and the wages have tripled in the last ten years. There's a lot of movement out of China, and a lot of investment from China in other countries as well in the garment sector,” University of Warwick Economics Professor Christopher Woodruff said.

He noted that Sri Lanka cannot compete with apparel manufacturers in regional countries such as Cambodia, Ethiopia, Myanmmar and Bangladesh, since they have lower wages. “Everybody looks at Sri Lankan companies as the best managed companies in the region in the apparel sector; and they have to be, because wages are higher and they are competing against low wage countries,” he added.

Prof. Woodruff said that as the competitors copy Sri Lanka's practices, industry growth will die off. “There's a lot of movement out (of China) and that movement out may slow the demise of the sector here, in the sense that the low wage countries - Ethiopia, Bangladesh, Cambodia - can only grow so fast, and there are a lot of companies that are moving out, so this is an opportunity,” he said. Since there is a human resource shortage in apparel, Sri Lankan manufactories are looking for more automated processes, which may increase productivity further.

Meanwhile, Harvard Centre for International Development Director Riccardo Hausmann said that traditional industries such as apparel, agriculture and tea would stop growing in Sri Lanka as it transitions into a post-knowledge economy, similar to countries like Thailand, Turkey and Costa Rica in the 1990s.

“They didn't abandon the old things. They went into new things with value addition,” he said.

Sri Lanka's apparel sector has set an export target of $10 billion by 2025. In 2014, it brought in $4.9 billion in foreign exchange, compared to $4.3 million in 2013. The Sri Lanka Apparel Exporters Association wants to achieve this growth through increased demand by selling to regional economies which are now becoming strong enough to afford higher-quality Sri Lankan apparel products.

George Soros in his address said that in addition to several unsolved problems in Sri Lanka, the imbalances in the world economy too will create problems for the island nation's forward march.

"A falling Chinese currency is de-stabilizing the world, and the country is trying to transfer its problems to the rest of the world," Soros said at the inaugural session of the Sri Lanka Economic Forum.

The exchange rate is now dropping and it is de-stabilizing the rest of the world. China is now inflicting on the rest of the world this deflationary pressure, he said. (SH)

Fibre2Fashion News Desk - India


Must ReadView All

Textiles | On 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Textiles | On 20th Sep 2017

Pakistan seeks more JVs with China: textile minister

The Pakistani Government wants to forge more joint ventures (JVs)...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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