The organisers of this launch, AISEX 2018, Mr Arjun Dharmadasa and his team at LECS must be congratulated for their professionalism and the highly impressive media reaction they have generated. They have also assembled a stellar panel to address you today.

 

The Sri Lankan apparel industry enjoys an enviable reputation in the world for a number of very good reasons.

1. It is known for on time delivery of orders. It has also established itself as a high quality producer of garments and a niche market supplier, from ski gear to expensive lingerie. 

2. Its flexibility and versatility. It has a reputation for adjusting and responding to the rapidly changing trends in the world of fashion. This has made it a partner of choice for some of the top brands in the world, GAP, Banana Republic, Zara, Victoria’s Secret, Macy’s, Marks and Spencer, to name a few.

3. The highly educated and easily trained work force which is now in demand even overseas.

4. Its compliance with global labour and environmental standards which has enabled it to market its products under the slogan “Garments Without Guilt”. Women’s and child rights related global standards are followed scrupulously. No children slave away in our factories and women are provided transport to go home after work. Many of our factories have shifted to solar and biomass for their power requirements, well ahead of its competition elsewhere. It used to give me particular pride to highlight these achievements when I was the ambassador and permanent representative to the UN in New York.

 

Although our costs may be higher, our reliability as a supplier continues to attract buyers. In fact, after the termination of the Mutifiber Agreement in 2005, despite the fears that China would swamp the market, Sri Lankan apparel manufacturers continued to increase market share.

 

Sri Lanka also has succeeded in fostering the apparel industry without undergoing some of the problems confronting many of our neighbours in the region. By design or by accident, our factories are located in rural areas, away from the cities. The workers, mainly women, travel to work from their homes and live with their families. We have avoided the overcrowding of our cities and many associated social problems, particularly of young women drifting in to cities looking for work and ending up on the wrong side of the street. As a result, Colombo, is still a very livable city.

 

A robust apparel industry will attract foreign investments which is essential for the country as it continues up the ladder of development. We must make policy adjustments to attract more foreign investments. Make it easier for FDI to seek Sri Lanka as a preferred destination. The high end apparel industry is a well established target that can be made available.

 

An opportunity opens up with China’s stated goal of coring out its apparel industry for cost and environmental reasons. Sri Lanka with its established reputation could use this opportunity to attract some of the Chinese manufacturers to locate their plants here. It also creates the possibility of developing our design and advanced fashion industry which will provide local talent with another outlet. However training, proper design institutes and other facilities are a must. The industry and the government must collaborate in this. Our IT industry can expand to cater to online orders and ontime delivery demands.

 

There is a fear that a looming Labour shortage will affect the progress of the industry. But there is a solution to this challenge. Sri Lanka exports over a million workers, mainly women, to work as lowly paid domestics in the Middle East. There are many social issues that result from this phenomenon, including the men remaining behind using the wages repatriated by the wives turning to alcohol, children growing up without adequate supervision and child abuse not to mention the abuse of women in the host countries. Perhaps with better wages and training they could be retained, thus helping to address our own Labour needs. The increased cost could be an issue. The industry, along with the Government, civil society organisations and other interested parties could combine to create incentives for our workforce to remain in Sri Lanka. Better training for the workers, better education and health facilities for them and their children, opportunities for the workers, women in particular, to advance themselves, etc.