Extended Curfew Leads Apparel Sector To Crumble Further!

Apparel exporters urge govt. to allow factories resume work in full capacity JAAF fears possible trade shift due to halt of operations Requests to do away with EPF/ EFT for next six months Warns failing to activate proposals will lead to “ non-existence of an industry to reopen”

- Shabiya Ali Ahlam

Sri Lanka’s apparel sector is crumbling further as the prolonged curfew in place to contain the coronavirus outbreak, has placed the industry at a disadvantage with buyers choosing to divert orders to competitors due to lack of clarity as to when operations would resume.

In addition to export revenue contraction of about US$ 1.5 billion foreseen for the first quarter of the year, the Joint Apparel Association Forum (JAAF) said that it fears a trade shift might take place, which could lead to further revenue losses.

Pointing out that it is inevitable that the extended curfew will lead to additional losses as more orders would get cancelled as a result of production delays, JAAF Chairman A. Sukumaran said the few orders Sri Lanka could be getting are being diverted due to the uncertainty related to when the country will begin work again.

“The impact of the curfew is compounded and may result in trade shift due to countries like Vietnam, Cambodia, and Indonesia, our main competitors, be ing completely operational,” said the Chairman in a statement released to the media yesterday.

Sukumaran stressed that JAAF is of the view that extreme measures are inevitable unless there is intervention and support to avert the impending disaster.