Brief Discussion About SRI LANKAN apparel industry.

1. Apparel Industry
in Sri Lanka

2. 1. Introduction
2. Time line of industry
3. Woman in industry
4. Challenges for woman / industry
5. Why is EU GSP plus important to Sri Lanka?
6. Why Sri Lankan apparel
7. Sustainability and ethical practices
8. Apparel export performances
9. Associations and organizations
10. How to increase competitive advantage in industry
11. SWOT analysis
12. Future of Apparel Industry
CONTENTS
Zeinul Haleem

3. THE APPAREL INDUSTRY IN SRI LANKA had a
modest beginning in the 1960s producing mainly textile
and clothing for the local market under heavy protection.
The apparel sector is the highest industrial employment
generator and the highest foreign exchange earner.
It contributes 52% to industrial production while
representing 40% of total export value over the late
2015.
Zeinul Haleem

4. SRI LANKA IS THE one and only Asian country
which is practicing high ethical practices, eschews
child and forced labor thus being known to the
world as a producer of “Garments without Guilt’.
Sri Lankan Apparel Manufacturers & Suppliers are reputed
worldwide for producing top quality ethical fashion apparel
trusted by the iconic global fashion brands.
Sri Lanka has Green, eco friendly,
carbon neutral apparel &
Platinum LEED certified factories with
many prestigious achievements.
Zeinul Haleem

5. The local industries were protected by the
government intervention under the industrial
policy.
The existence of a well-run Textile industry was
evident that was underpinned by the government
intervention following an import substitution
strategy.
Introduction of open economic policies
After the introduction of open economic policies in
the outlook of the industry was totally changed
within an export-oriented strategy
TIME LINE
1950s
1970
1960
1980
1977
Zeinul Haleem

6. TIME LINE
1982s
1990
1987
Association of the apparel export industry in Sri
Lanka inaugurated in 1982
In 1985, Martin Trust, one of the pioneers in the
development of “speed sourcing” for the American
fashion retail sector, began working with Sri Lankan
textile and apparel companies.
In 1986 and 1987 he established joint venture
partnerships with The Omar Group (formerly known
as LM Apparels and part of the Brandix group) and
The Amalean Group which helped make the country
more competitive through knowledge transfers and
technology, attracting further foreign investors.
1980s
1985s
Zeinul Haleem

7. The apparel industry grew to represent Sri Lanka's
number one export. Following a 38% increase in
textile-based revenue from 1996 to 1997,
50 new textile factories opened in Sri Lanka in 1998.
As of 1998, the Sri Lanka apparel industry employed
about 300,000 people in 800 factories.
in 2000 setting up logistics centres at key US ports
to smooth the importation of Sri Lankan goods
in 2004, Sri Lankan officials have sought to increase
textile deals in North Carolina, the American state
with the largest concentration of textile industries
Gaining EU GSP +
1995s
1990s
1998s
2000s
2004s
2005s
TIME LINE
Zeinul Haleem

8. 2006s
2005s
2010s
2014s
2017s
Sri Lanka’s average annual growth of exports to the
EU before GSP (2001-2004) was 11.5%.
It rose to 16.4% in the GSP+ period (2005-2009).
The EU suspended Sri Lanka’s GSP+ status.
(Due to Human rights issue in final war)
Since the loss of GSP+, this figure has again
declined, sitting at 7.4% during the period 2010 to
2014
Gaining GSP +
TIME LINE
Zeinul Haleem

9. WOMAN IN APPAREL INDUSTY
Zeinul Haleem

10. WOMAN IN APPAREL INDUSTY?
“Apparel manufacturing not only has a huge potential for creating jobs,
particularly for the poor but also has a unique ability to attract female
workers. Employed women are more likely to create positive social impacts
as they tend to dedicate their income to the health and education of
children,” Françoise Clottes,
Country Director,
World Bank Sri Lanka and the Maldives
Woman
79%
Men
21% The majority of the apparel sector workforce
comprises of women, they are mostly confined
to the lower levels of the production process
(e.g., machine operating) and men tend to
dominate the upper management positions -
Zeinul Haleem

11. CHALLENGES IN INDUSTRY (WOMAN)?
Competition from other sectors – The apparel sector has to
compete with other sectors, especially service sector industries such
as tourism and retail, to attract labour.
Mobility issues –Woman are reluctant to migrate and to work in
urban areas or in the free trade zones, where many garment
factories are located. Even single women are hesitant to live in urban
areas because of the difficulty in finding safe accommodation.
Bad social image – There is a negative social perception
associated with women who in garment factories.
Changing career aspirations of the younger generation –
today’s generation looks for more prestigious ‘computer-based jobs’
where they can enjoy more flexibility and social interaction.

13. A review of Sri Lankan exports indicates that nearly 57% of
exports is exported to EU and USA. It shows 27% of exports is
shared by USA and the majority 30% is shared by EU.
Out of all products exported during the last 25 years, the
apparel sector has taken the lead in 45% of total products
exported.
The most significant feature is that the USA and EU equally
share 43% of exports, making the total 86% of whole Sri Lanka
apparel exports.
Why is EU GSP Plus important to Sri Lanka?
Zeinul Haleem

15. SRI LANKAN APPAREL IS well geared to meet global
market demand for fast, high quality ethical fashion products.
Three decades of experience.
Environmental friendly factories – world’s first LEED certified
Platinum rated production facility.
Ethical practices & Ethical Working conditions.
International reputation as a reliable and a quality manufacturer
with a highly competent, skilled and literate workforce.
WHY SRI LANAN APPAREL
Zeinul Haleem

16. SRI LANKAN APPAREL IS Focus to improve speed on delivery
using strategic location advantage, coupled with the conducive
business friendly environment within the country.
Large number of companies that are regional players and have the
capacity to provide competitive regional advantage by harnessing
regional strengths in the supply chain.
Innovation focused factories which offers superior product
development and design resources & Investment friendly
government policies and strategic shipping advantage.
WHY SRI LANAN APPAREL
Zeinul Haleem

17. Sustainability
&
Ethical Practices

18. SRI LANKAN APPAREL INDUSTRY is strongly committed
to ethical manufacturing practices and sustainable
development assuring the industry's commitment to ethical
working conditions,
Free of child labour,
Free of forced labour,
Free of discrimination and
Free of sweatshop practices.
Ethical brands and Sri Lankan apparel go hand in hand and this
focus on sustainability has proved a worthy investment in the
future of the industry.
Continued collective effort to reduce the carbon footprint
& Environmental pollutions.
Sustainability & Ethical Practices
Zeinul Haleem

19. Showcases the best of technology including the world’s first
eco-friendly “Green Garment Factory” that cut energy in
half and water consumption by 70%.
These factories have found business sustainability through the
practice of lean manufacturing, with lowered overheads and
faster return on investment.
LEED Platinum and Gold Certified entities practice
international standards of recycling, effluent treatment and
waste management practices.
Sri Lanka is positioned as a socially responsible and preferred destination for
apparel sourcing.
Sustainability & Ethical Practices
Zeinul Haleem

20. Apparel Export Performance

21. Apparel Export Performance

22. • Joint Apparel Association Forum (JAAF)
• Sri Lanka Apparel Exporters' Association
• Apparel Exporters Association 200 GFP
• Sri Lanka Chamber of Garment Exporters
• Fabric and Apparel Accessory Manufacturers’ Association
• Free Trade Zone Manufacturers Association
• Sri Lanka Apparel Sourcing Association
• Board of Investment of Sri Lanka (BOI)
• Ministry of Industry & Commerce
Further More
SUPPORTERS
Zeinul Haleem

23. Enter into more trade agreements to help diversify export destinations
for existing products, such as active wear and intimate apparel
Expand into new products such as formal wear and high-end outerwear
that require higher skills, and position as regional apparel and textile
trade hub taking advantage of its infrastructure advantage
Attract foreign investment through adopting clear investment policies,
which currently remains at only 2 percent of GDP
Increase integration with South Asia and reduce tariffs for the import of
manmade fibers, which accounts for 50% of Sri Lanka’s industry inputs,
while encouraging domestic growth
Promote industrial relocation and attract more female workers to relieve
its labor shortages
How to Increase Competitive Advantages
Zeinul Haleem

24. SWOT analysis of industry
Strategic Location
Work Force
Technology
Competitive
Advantages
World Reputation
Situated on the main sea routes is an attraction for
manufacturers.
Availability of skilled labour, educated and
trainable work force
Some of the most modern factories to be found
anywhere in South Asia
a significant competitive advantage in terms of
certain garment types: (Ex The lingerie, swimwear)
ability to handle high volume orders
a reputation for quality short lead times &
on time delivery
Garment without Guilt reputations
Strength
Zeinul Haleem

25. SWOT analysis of industry
Lack of Knowledge
In Export Marketing
Raw Materials
Workforce
Challenges
Lack of marketing skills and a low level of
marketing information, and knowledge about
export marketing.
the need to import all raw textiles
high absenteeism and labour turn over.
availability of employment in other industries &
foreign employment opportunities
Increasing labour cost
Challenges from other Asian Countries
Bangladesh, Pakistan, Vietnam & Philiphines
Weaknesses

26. SWOT analysis of industry
EU GSP +
An emerging
economy
increasing
Political
Stability
Entrepreneurs
re-instatement of GSP+ now looks to be a strong
probability. This will allow Sri Lankan garment
manufacturers to export to Europe without incurring
taxes or quotas.
Sri Lanka has a lot going for it right now, and the pre-
conditions for strong economic growth look to be in
place.
a go-ahead government with ambitious plans to fast
track growth and with a clear vision for the future
the emergence of a new breed of young ambitious
entrepreneurs
Opportunities
Zeinul Haleem

27. SWOT analysis of industry
EU GSP +
Raw Materials
Workforce
Challenges
increasing competition especially in terms of lower
labour cost from Bangladesh, Cambodia Laos and
Vietnam Myanmar
Sri Lanka’s labour costs are increasing at a faster
pace than productivity
competition for labour with other emerging
industries especially in Western Province ( see
Prime Minister’s commets re manufacturing “mix”
the necessity to reduce lead time from the
manufactures to the shop, and the distant
suppliers’ inability to deliver the value added
garments on time
Threats
Zeinul Haleem

28. In Industry Bangladesh, Viatnam & Cambodia has a great growth rate in past
years comparing to Sri Lanka. Competitive advantages of Low Labour Cost,
Raw Material Availability and suspension of EU GSP+ (Sri Lanka) are mainly
boost their industry. Changing Technology & Huge investment on
Infrastructure developments took forward India & China in this industry.
Sri Lanka has a goodwill in industry which is “Garment without Guilt”, Eco
Friendly Garments & well educated labours are strength and If SL promote
these in EU SL can gain more shares very soon. Location of Country is great
advantage for future business. SL government is planning to develop new
trade zone in Hambantota. This will reduce high cost of transport in industry
& time waste. If Sri Lanka government can succeed in these tasks, this will
definitely boost future of Apparel industry in Sri Lanka in Positive way.
Today Sri Lanka’s three principal apparel manufacturers are already amongst
the world’s 50 most valued garment producers as such it is no wonder that
this industry has consistently seen over US 3 Billion in export revenues with
aspirations for colossal growths by the year 2020.
Future of Industry
Zeinul Haleem

29. “I see Sri Lanka’s economic future as a
services hub; a niche manufacturing
destination to produce goods which plug
into regional and global value chains,
particularly light engineering; and a
location for high-value agricultural
products such as fruits, vegetables and
dairy, both to service the rapidly growing
tourism sector and for exports, especially,
to the Middle Eastern and Indian markets”.
Mr. Ranil Wickramasinghe
Prime Minister (2017)