The apparel industry of Sri Lanka has been able to maintainits steadiness and mitigate the impact of recession on the economy by itssatisfactory performance in the first quarter of 2009. While Apparel Industryexpresses its satisfaction over its performance it acknowledges that it was dueto timely action taken by the Government with necessary macro policy adjustmentmeasures, providing relief by implementing proposals announced in the Budget of2009 and putting in place Export Development Rewards Scheme that enabledApparel Industry not only to be competitive but also record a growth in exportsin the first quarter of 2009.


The total exports of apparel in the first quarter of 2009was US$ 801.3 million compared with US$ 736.2 million in the previous year thusrecording 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 comparedto US$ 360.9 million in the previous corresponding period, exports to the EUincreased to US$ 404.4 million in the first quarter 2009 compared to US$ 336.0in the previous corresponding period, recording a high positive growth of20.3%.


The performance of the apparel sector in the first quarterof this year should be viewed in the background of all major exports markets ofSri Lanka are in recession and with the export sector facing many challengesboth Internationally and Domestically and many other exports sectors of theeconomy not been able to maintain their previous levels of exports.


The many contributory factors which enabled Apparel Industryto perform satisfactory include removal of surcharge on electricity, reductionin cost of furnace oil and implementing other measures announced in the Budgetof 2009. The timely announcement of Export Development Rewards Scheme by theGovernment and putting in place an implementation structure enabled ApparelIndustry to maintain its competitiveness and prevent their major buyersshifting to our competitor countries. The recent adjustment to exchange ratesfor which the apparel industry has been making representation has also had itsdesired positive impact.


The membership of Sri Lanka Apparel being the major contributor toforeign exchange earnings of the country accounting for 43% of total exportearnings, wishes to express its deep appreciation to HE the President MahindaRajapaksa for his far-sightedness in taking necessary macro economic measuresand implementing Export Development Rewards Scheme for the benefit of theIndustry at a time Sri Lanka is faced with challenges of fighting ruthlessterrorism 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 initiativestaken by him to address and resolve many issues affecting the Industry, whichimmensely contributed to performance of the Apparel Industry. The contributionmade by Prof. G.L. Peiris, Minister of Export Development and InternationalTrade for putting in place administrative structure for implementation of EDRSand initiatives taken to find new exports markets, as well as support andassistance provided by Hon. Kumara Welgama, Minister of Industrial Developmentfor implementing many programmes are acknowledged with appreciation. The Sri Lanka Apparel also take this opportunity to thank all other Government institutions for theircontribution which enabled our members to perform.


The Sri Lanka Apparel members are acutely aware the challenges they have to face as majorInternational export markets are still in recession. The Sri Lanka Apparel is confidentworking in partnership with the Government our members will be able to continueto maintain its exports performance.