Wednesday Dec 11, 2024
Wednesday Dec 11, 2024
Friday, 3 September 2021 00:24 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
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| Hirdaramani Group Director Aroon Hirdaramani |
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| Jeevith Senaratne
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Top apparel manufacturers yesterday reiterated that the European Union (EU) GSP+ is very critical for the future growth of exports and expressed hope that the Government will work towards retaining the concession.
“Since the past five years, the major part of the export growth, which took us to over $ 5 billion came from the EU brands and markets. It’s a very important part of our current growth strategy,” Hirdaramani Group Director Aroon Hidramani said at a webinar yesterday.
The event titled ‘Be inspired by the pandemic: Resilient corporate success of Sri Lanka’s apparel industry’ was organised by the American Chamber of Commerce (AMCHAM).
The apparel sector contribution to the GDP is 16% and its input to the total exports were 43%. In 2019, Sri Lanka recorded $ 5.3 billion in exports, but it dropped sharply to $ 4.1 billion last year as a result of the COVID pandemic.
He pointed out that it is important to closely engage with the discussions over the GSP+ and have the necessary support for each stakeholder.
It was also noted that the Joint Apparel Association Forum (JAAF) and other trade bodies have already engaged with the Government and some EU associations to see how Sri Lanka can work closely to mitigate some of the concerns that has been raised.
“It is critical to have a collaboration in terms of how we can work openly to solve some of these matters and continue the positives that have come from the EU GSP+ facility,” Hirdaramani said.
Star Garments Group Senior Manager – Business Analysis Jeevith Senaratne said that the Government will take necessary steps to retain the EU GSP+ facility.
“During the discussions we engaged with the relevant authorities and they too reiterated to us that they understand the importance of the trade preferences and the EU. They are working on it,” he added.
They also insisted that the Government too need to explore further trade agreements, pointing out 70% of total apparel exports of Bangladesh are through trade preferences.
Sri Lanka only have the EU GSP+; therefore, at a national level, they highlighted the importance to explore trade preferences with markets such as India, Japan and the US.
Over one million, or 16% of the workforce, are engaged in the apparel sector, where 350,000 are directly employed.
