Apparel industry records 20.3 percent growth
The apparel industry of Sri Lanka has maintained its steadiness and
mitigated the impact of recession on the economy by its satisfactory
performance in the first quarter of 2009.
The total exports of apparel in the first quarter of 2009 was US $
801.3 million compared with US $ 736.2 million in the previous year,
recording an overall growth of 8.8 percent.
Total apparel exports
|
Value US $ mn
|
March 2008 March 2009 Change %
Total Exports 265.4 301.6 +13.6
To US 140.8 127.1 -9.7
To EU 112.3 156.2 +39.0
Jan-March 2008 Jan-March 2009 Change %
Total Exports 736.2 801.3 +8.8
To US 360.9 346.3 -4.0
To EU 336.0 404.4 +20.3 |
Although exports to the US recorded four percent decline in January -
March 2009 with exports recording US $ 346.3 million compared to US $
360.9 million in the previous corresponding period, exports to the EU
increased to US $ 404.4 million in the first quarter 2009 compared to US
$ 336.0 in the previous corresponding period, recording a high positive
growth of 20.3 percent.
While the apparel industry expresses its satisfaction over its
performance, it acknowledges that it was due to timely action taken by
the Government with necessary macro policy adjustment measures,
providing relief by implementing proposals announced in the Budget of
2009 and putting in place Export Development Rewards (EDR) scheme that
enabled the apparel industry not only to be competitive but also record
a growth in exports in the first quarter of 2009.
The performance of the apparel sector in the first quarter of this
year should be viewed in the background of all major exports markets of
Sri Lanka with the export sector facing many challenges internationally
and domestically and many other exports sectors of the economy not being
able to maintain their previous levels exports.
The many contributory factors which enable the apparel industry to
perform satisfactorily include removal of surcharge on electricity,
reduction in cost of furnace oil and implementing other measures
announced in the 2009 Budget.
The timely announcement of Export Development Rewards (EDR) scheme by
the Government and putting in place an implementation structure enabled
the apparel industry to maintain its competitiveness and prevent their
major buyers shifting to other competitor countries.
The recent adjustment to exchange rates for which the apparel
industry has been making representations has also had its desired
positive impact.
The membership of JAAF being the major contributor to foreign
exchange earnings of the country accounting for 43 percent of total
export earnings, express its deep appreciation to President Mahinda
Rajapaksa for his far-sightedness in taking macro economic measures and
implementing the EDR scheme for the benefit of the industry at a time
when Sri Lanka is faced with challenges of fighting terrorism.
The JAAF also wishes to convey its gratitude to Basil Rajapaksa, M.P
and Special Advisor to President, for the initiatives taken by him to
address and resolve many issues affecting the industry, which immensely
contributed to performance of the apparel industry.
The contribution made by Minister of Export Development and
International Trade Prof. G.L. Peiris, for putting in place
administrative structure for the implementation of the EDR scheme an
initiative taken to find new exports markets, as well as support and
assistance provided by Minister of Industrial Development Kumara Welgama
for implementing many programs. |