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| Wednesday, 7 January 2004 |
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China poses major threat to Lankan apparel industry By Shirajiv Sirimane China would be a major threat to the Sri Lankan apperal industry said Program Manager Apperal Sector, Factory Improvement Project of the Employers' Federation, Rienzie Diaz. "A customer has to pay only US $ 19 to produce a garment and for value addition in China while the Sri Lankan rate for the same service is around US $ 22. Speaking at the ISO 9001- 2002 certification ceremony of Continental Fashions (Pvt.) Ltd, Mirigama last week he said that the main advantage China is enjoying over other countries is their cheap electricity, manufacture of own fabrics and mass production. "While the Sri Lankan garment sector works on a daily wage basis, China pays for each finished piece. Hence in China all employees work harder and there are more garment pieces produced daily." This paying system is adopted in most countries including Bangladesh, which has minimised waste. The employer also does not have to pay EPF and ETF when adopting this system, which has resulted in more investors. The United States, which is one of the largest garment buyers, purchases only .09 percent from Sri Lanka while they place orders for 35% from China. He said that with the quota system ending in 2004 Sri Lankan companies have to be more competitive and aggressive. Sri Lanka should seriously think of improving their garment production or soon the small time garment manufacturing companies will run out of international orders. Over 52% of garment manufacturing orders are placed in the open market while the rest is issued on a quota system. Manager Certifications, SGS International Certificates Sri Lanka Branch, B. A. Sumanasiri said that only 96 Sri Lankan garment manufacturing companies have obtained the ISO certification and more companies should obtain this certification in a bid to compete in the global market. The SGS has awarded this certification for 70,123 companies globally. The certification system that was introduced to Sri Lanka in 1984 became very popular in 1995. "This is because most of the international garment buyers and agents wanted an ISO certification since it was a common procedure all over the world. This certification is a stamp of international quality and the buyers know that they cannot be cheated by a company having this." General Manager Continental Fashions (Pvt.) Ltd, M. S. Faizar said that his company is the smallest medium sector garment manufacturing company, to receive this certification. Set up in 1996, it employs 250 and their main export markets are USA and European' Union countries. Specialising in the manufacture of ladies and gents undergarments the company exported two million pieces last year. |
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