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By Channa Kasturisinghe

Problems faced by small and medium scale apparel exporters' should be given special focus in the new Government's hundred days program to address the burning economic issues of the country, Sri Lanka Chamber of Garment Industries immediate past Chairman Cassian Fernando told the Daily News.

He said the SME sector which accounted for 40 percent of the apparel exports and 70 percent of the garment factories in the island was in need of substantial relief due to adverse trade conditions and it was vital to promote the sector to successfully tackle the issue of the quota restriction in 2005.

"During the last three months the sector had been in dire straits. About 250 factories are still operating at 50 percent below installed capacity while some factories had to be closed. We called the previous Government to compensate these industries by sharing 50 percent of the expenses on wages including EPF and ETF which, could be redirected from the restructured Cess Fund. However, it is now left for the new Government to take this measure", he said.

It is also important to freeze the interest component of loans obtained by affected industries. The Chamber had also called upon the previous Government to establish a dedicated fund from the Cess on apparel exports and provide a 75 percent grant for SMEs with 25 percent counterpart funds," Mr. Fernando said.

He said as a long term measure to promote the industry the Government should appoint experts to effectively lobby with buyers in the US and Europe to review duty concessions to enable the local exporters to compete with countries such as Pakistan, Bangladesh and countries in the Sub Saharan region.

"More buyers and sellers meetings should be arranged rather than trade fairs. It would increase the opportunities for us to come into more favourable agreements with the buyers in these countries.

Some of our members have already registered in the Export Development Boards program funded by the Commonwealth Secretariat to explore markets in the USA, Canada and Europe. However, the program is slow in progress. Such initiatives should be given special assistance by the new Government to promote the sector before 2005," Mr. Fernando said.

He said promoting brand names of locally manufactured garments is also another step towards protecting the sector. 

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