SL and China pledge closer cooperation in apparel sector

The China National Textile and Apparel Council has signed an MOU with the Joint Apparel forum of Sri Lanka (JAAF).

Following an initiative taken by the Embassy of Sri Lanka – Beijing, China National Textile and Apparel Council Vice President Xu Yingxin and JAAF – SL Chairman A. Sukumaran, signed a memorandum of cooperation online on 20 January, on behalf of their respective associations. 

Sri Lankan Ambassador to China Dr. Palitha Kohona witnessed the signing ceremony. The online signing event was coordinated by Minister of the Embassy of Sri Lanka Alexi Gunasekera. 

JAAF Secretary General M.P. Tuli Cooray, JAAF Ex-Co member Yohan Lawrence, China National Textile and Apparel Council Deputy Secretary-General Yuan Hongping, Director General of the Commerce Department Ananda Dharmapriya and Director General of the Sri Lanka Export Development Bureau Chitranjali Dissanayake attended the event.

This event was the first MOU signing since Dr. Palitha Kohona assumed office as Ambassador in Beijing in December.

Vice President Xu Yingxin first explained the current status of China’s textile industry, the economic condition affecting China’s textile industry in 2020, and the trade and investment state of China’s textile industry. 

He said that in 2020, due to the impact of the epidemic, industrial textiles, especially non-woven products, have seen an expansion of demand, resulting in a sharp increase in output. With the resumption of work, China’s economy has steadily improved, and the consumer market has continued to pick up. In 2020, China’s total textile and apparel exports reached $ 291.22 billion, a year-on-year increase of 9.6%. 

He further stated that China-SL textile and apparel trade has shown an increase in the past three years. In 2019, the total textile and apparel trade between the two countries was $ 1.24 billion.

Chairman Xu also mentioned that the China Textile Federation has been implementing the ‘One Belt and One Road’ initiative and is committed to helping Chinese textile and garment enterprises expand trade, investment and exchanges with countries around the world. 

Highlighting the fact that SL has a number of high-quality garments export-oriented enterprises, he hoped that the China Textile Federation and JAAF will work together to promote value chain cooperation in the two countries, strengthen mutual visits, promote exchanges and build mutual trust among industry personnel.

A. Sukumaran called JAAF the apex body of the textile and apparel industry in SL and stressed that it maintains close communication and contact with Government Departments, and guides SL apparel towards its ultimate goal of being the world’s number one apparel sourcing destination.

He noted that today, SL Apparel is the single largest contributor to the industrial exports of the country, recording a turnover of $ 5.6 billion in 2019. 

The industry employs over 350,000 people directly and touches the lives of over a million Sri Lankans. 

The industry represents a 7% contribution to the country’s GDP and 47% of its exports and has a value addition locally of over 55%, he added. This high-level of value addition has been achieved by offering customers high value-added solutions, such as innovation design and product development within the country, and with the planned expansion of the supply chain arrangements by members of Fabric and Apparel Accessories Manufacturers Association (FAAMA), which is one of the constituent bodies of JAAF. 

Further, he said that like the rest of the world, COVID-19 has had its impact on the SL economy and the apparel industry. In 2020, SL’s apparel exports showed a decline of over 20%, as exports dropped to just over $ 4 billion. He further said that the industry is confident that it will recover in the next couple of years, particularly as sectors like casual, sports and leisure are a big part of the mix of products that SL manufacturers.

Commenting on the MOU, he said that it was an exceptional landmark and thanked the SL Embassy in China for their efforts and involvement in orchestrating this event. He further highlighted the fact that SL has many large-scale high-quality garment processing enterprises, and that most of their fabric needs are imported from China. 

The new SL Ambassador to China Dr. Palitha Kohona, said that it was a great privilege to be associated with this event barely a month after he assumed duties.

China is a huge consumer market and with a 700 million plus middle-class, it could become the next key market for SL’s world-renowned apparel, he stated. 

SL is an important hub in the Maritime Silk Road, with its unique geographical advantages and the Government’s policy under ‘Vistas of Prosperity and Splendour’, Dr. Kohona said it would become a sought-after investment destination.

The Ambassador highlighted that the Government of SL is currently in the process of establishing an industrial zone dedicated to textile manufacturing at Eravur in the Eastern Province. Further elaborating on the Fabric Park, he said the objective of establishing this Textile Zone/Fabric Park is to set up a raw material base for the apparel industry to facilitate the availability of raw material readily to increase capacity, to utilise the preferential facilities and to improve competitiveness of the garment sector. He invited CNTAC to encourage Chinese Direct Investment to the initiative, which he hopes will generate substantial employment in SL.

Further, he said that SL has a reputation for being a high-quality apparel manufacturer with a solid, international customer base. It also complies with international labour and good governance standards, has a skilled and trainable labour force, and is in a position to provide competitive pricing, on time delivery and be a manufacturer for premium brands and well-known for supplying ‘Garments without Guilt’.

On a closing note, he said now that the foundation has been laid by signing the MOU, JAAF, CNTAC and the SL Embassy in China will work together to promote the healthy cooperation between the industries in both countries. He hoped that the two sides can realise this through mutual consultation under the strategic framework of the ‘Belt and Road’ strategy.

International Liaison Dept. CCPIT TEX Deputy Director Shelley Shan, International Liaison Dept. CCPIT TEX Senior Project Manager Joy Jin, Trade and Investment Promotion Dept. Senior Project Manager Rosa Xue and Commercial Assistant of Embassy Jessica Han also participated at the event.