Footwear industry calls for Government assistance

Anjana SAMARASINGHE

FOOTWEAR INDUSTRY: Total export earnings from footwear recorded USD 12.91 million last year and it was USD 13 million in the previous year.

The industry needs government's assistance for its development since it has been ignored by the previous regimes.

President of the Sri Lanka Footwear Association Sarath Pathmalal said in the past the footwear industry contributed much to the country's economy.

Still there is a huge market potential for footwear in the European market. But due to lack of government assistance, the country could not gain fruitful results, he said.

Government's assistance is necessary in promoting footwear exporters in the International market.

There should be proper exposure to the international market about the Sri Lankan footwear industry to attract more buyers to the country.

International trade events provide ideal opportunities for industrialists to meet buyers. But the industry is lacking in participating in such events and the Government should address this issue, he said.

Local footwear market also not in a healthy situation due to shoe import from China. Though there is a tax imposed on imported shoes, still consumers can buy a pair of shoes for Rs. 150 from the pavement. This is mainly because of illegal imports from China, he said.

Because of poor exposure, the industry could not gain real benefits through GSP concessions.

This has also prevented industry in exploring opportunities that have been created through the imposition of anti dumping duties for leather shoe imports from China and Vietnam to the EU markets.

Another exporter said that most of the small scale exporters are not aware on GSP concessions and what benefits they could gain through these incentives. Even most of the buyers in Europe are not aware of the concessions.

If the exporter is aware of the incentives, he could negotiate with the buyer for a better price. There should be a proper programme that would educate exporters on any concession that has been offered to the industry.

Director General of Department of Commerce K. J. Weerasinghe said there should be proper awareness among exporters to gain real benefits through the GSP concessions.

However Sri Lanka is the only Asian country that has received GSP concessions from the EU. The WTO has protested to the EU for offering concessions to Sri Lanka saying that Sri Lanka is not benefitting through this.

But the most unfortunate thing is that local authorities do not value these concessions and take real use of them.