Geneva resolution no impact on Lankan trade :

‘Europe, SL’s biggest apparel market’

Sanjeevi JAYASURIYA

The United Kingdom, and Europe as a whole, is the single biggest market for Sri Lanka's apparel exports. Nearly 50 percent of the exports , US$ 2 billion out of a total of US$ 4 billion go to Europe. That figure has grown despite the economic downturn in Europe, where customers and shoppers have been tightening their belts in tough times, British High Commissioner John Rankin said.

The duty concessions under the EU's Generalised System of Preferences (GSP+) so far has not appeared to have greatly affected the volume of Sri Lankan exports to Europe. Indeed overall exports are still on track to rise year on year.

However, the margins may have been tightened, certainly for manufacturers and also for outsourcing partners, he said at the Sri Lanka Apparel Sourcing Association's 19th AGM held last week at Water's Edge Battaramulla.

Sri Lanka could still profit by regaining the GSP+ concession. But, it is for the Government of Sri Lanka to decide whether it wishes to meet the GSP requirements and re-apply for its benefits.

He said, “I see no reason however why the Geneva resolution should negatively impact the trade and investment relationship between Sri Lanka and those countries that supported the resolution.

The UK, the rest of the EU, the US and indeed India will remain Sri Lanka's major export markets for many years to come, and it is therefore in the interests of Sri Lanka as well as those countries that an effective commercial relationship continues.”

The resilience of Sri Lankan garment products in these western markets is a testament to Sri Lanka being a primary source of high quality, innovative and affordable clothing.

It is important to work together even more closely with local manufacturers to increase productivity, shorten lead times, streamline logistics and innovate where possible, he said. “I am delighted to be here for three reasons. First, because the garment sector is clearly of vital importance to Sri Lanka's economy.

It is vital in terms of Sri Lanka's exports, and it is vital in terms of the investment which companies such as yours put into this country.

'Secondly, because the success of your companies is of vital importance to the countries where you are headquartered or sell your goods, including the UK. I want British companies to be successful in Sri Lanka because that in turn will help them to be successful in the UK, creating jobs and growth.

And thirdly because part of my job as British High Commissioner is to promote trade and investment between the UK and Sri Lanka. The garments sector is the single biggest element in that trade and investment relationship. It's therefore important that I understand your industry, and support it when I can.”

The High Commissioner paid tribute to the local apparel sourcing companies for the strong role they have played in supporting high labour standards and research and development initiatives.

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