Home / Knowledge / News / Textiles / Garment sector becoming unviable leading to closures – Report

Garment sector becoming unviable leading to closures – Report

29
Oct '08
A report named “Jaqalanka Closure Report” was recently commissioned by the Fair Labour Association an international NGO. The report investigated the causes leading to closure of three garment factories under the management of the Jaqalanka group.

From amongst many reasons that the report mentions, one of the main conclusions that it has arrived at is that the garment industry in Sri Lanka is becoming increasingly unviable.
Though the industry prospered in the initial phases on basis of low costs, increasing costs are making the sector unviable.

The key reason attributed to increased costs is the shortage of skilled workers particularly in the Katunayake Export Processing Zone. This shortage is leading to ever increasing wages and in providing extra benefits to workers to retain them. This has lead to a sharp increase in costs for the garment manufacturers.

From amongst other reasons citied by the report, a rise in prices of key input raw materials, fuels, electricity and transportation have also contributed to the closure of three units of the group. The manufacturers are not able to pass on the increased costs to their buyers and have had to absorb them leading to a financial crisis.

The report concludes by saying that there was no evidence to suggest that the closures were effected by pressures from trade unions in any way which is confirmed by the owner according to the report.

Fair Labour Association, is an international NGO trying to end sweatshop labour. The fact finding was conducted by T-Group Solutions of New Delhi, with assistance from CSR International of Colombo.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 19th Oct 2021

11 European nations seek ambitious measures to tackle waste in textile

Eleven European countries—Austria, Belgium, Denmark, Finland, France, ...

Pic: Shutterstock

Textiles | On 19th Oct 2021

Industrial units in Vietnam’s HCM City hit by labour shortage

Several Vietnamese industries, especially labour-intensive ones like...

Pic: German Embassy Phnom Penh

Textiles | On 19th Oct 2021

Consortium comprising GIZ, others to address textile waste in Cambodia

An international consortium initiated by Deutsche Gesellschaft für...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Biggest learning was adaptability

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Vikash & Vishal Pacheriwal,

Vikash & Vishal Pacheriwal

Launched in 2018, Raisin is a contemporary fusion fashion brand that aims...

Harleen Kaur,

Harleen Kaur

Established in 2017 and headquartered New York, the label Harleen Kaur...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Samant Chauhan, Label Samant Chauhan

Samant Chauhan
Label Samant Chauhan

Delhi based fashion designer, <b>Samant Chauhan</b> who mostly works on...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by <b>Aprajita Toor</b> were born out of a deep desire to...

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

Leave your Comments


October 2021

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


Advanced Search