Garment industry should focus on value-added products for niche markets - Export Development Minister

"If Sri Lanka is to compete successfully in the highly discriminative international apparels market, its export thrust should focus on supplying value-added products to a differing array of niche markets that flourish in various economic sectors, said Minister of Export Development and International Trade Prof. G.L. Peiris at a presentation and discussion organised by the Joint Apparel Association Forum (JAAF) to secure the support of Government officials and support services for the apparel industry at the Hotel Ceylon Continental recently.

He said different courses of comprehensive action have to be employed for the country to derive the maximum benefits in a fast-changing economic atmosphere and the cornerstone of the continuing success of the Sri Lankan Garments Industry, in the aftermath of the expiry of the Multi-Fiber Agreement had been this large-scale value addition that had been embarked upon.

Prof. Peiris said that Members of the JAAF, as leaders of the local garment industry, had the foresight to identify accurately and derive benefits from the inherent advantages the country had, specially over the high caliber of the human resources and which was being exploited to the full. Coupled with the comprehensive vision on the non-dependence of imports such as yarn, buttons, fabric etc. as far as one could, this policy had resulted in the net earnings from the industry increasing quite remarkably towards US$ 3.1 billion. Comparatively, tea, Sri Lanka's traditional export could garner only US$ 1 billion.

Prof. Peiris pointed out that at the time the protection offered by the Multi-Fiber Agreement ceased to exist, many concerns were raised as to the continued well-being of the industry. But contrary to those dire predictions it had not only survived but thrived due to the vision of the leaders of the industry.

"That vision contained objectives but they were not in a vacuum but were backed by a practical strategy to accomplish those very objectives."

"Sri Lanka could not have lived forever under the protection of the quota system because it was something artificial which was meant to get the industry on its feet. Now it had reached its adolescence."

He said that garment factories had been the principle instrument that narrowed down to a very great extent, the social disparity that existed between the rural and urban sectors in this country. Though our per capita income of U$ 1650 put us on par with countries in the region such as Indonesia and the Philippines, there was an income disparity which was unacceptable within the region. With limited access to opportunity, such disparities caused the social insurrections in recent times.

"The garment industry too underwent tremendous difficulties during such a turbulent period of recent history, the period between 1988-89. As such, there was certainly no doubt that the garment factories, by being the principle mechanism that uplifted the living standards of the rural masses, had helped prevent such uprisings occurring in the future."

"Our major buyers in Europe were also interested in continuing the relationship with our industry as we did observe the quality and the standards required," he said.

Underlining another key aspect of the garment industry's performance, Prof Peiris referred to the nature of competing with integrity by example. Compliance with the highest moral and ethical standards had put the industry where it is today and as such, in the villages, the industry did not need to look as an external phenomenon.

"It had also undertaken the social responsibility for the improvements in the village. It had the holistic image on the one hand and the element of the upliftment of the village community on the other." With regard to the continuation of the GSP+ facility, Prof. Peiris said that negotiations were underway with the European Commission and that the Government hoped for a beneficial solution.

Messrs. Ashroff Omar, former President JAAF, Mahesh Amalean, Chairman MAS Holdings, Ajith Dias, Chairman JAAF and Kumar Mirchandani, Managing Director Favourite Group representing major business groups within the JAAF, made presentations on various segments of the Sri Lanka Apparels Industry.