Apparel industry facing tough times

The lack of fuel is causing concern among the SMEs in the apparel sector as they are unable to obtain required storage facilities and workers are finding it increasingly difficult to report to work as well.

While the large apparel firms do not face any big issue due to the availability of storage tanks to store fuel, the SME sector is unable to purchase stocks of fuel from Lanka IOC and the Ceylon Petroleum Corporation ( CPC) as they don’t have the necessary capacity to store fuel, Joint Apparel Association Forum ( JAAF) Deputy Chairman Felix Fernando told the Business Times. The SME sector produces approximately 20- 25 per cent of the export products.

He explained that already they have taken up these issues with the relevant authorities insisting that the apparel sector should also be considered an essential service and this was duly recognised thereafter.

With the growing shortage of fuel in the local market, Mr. Fernando explained that the situation is “getting severe and severe” and under the circumstances they will not be able to carry out their operations but will be compelled to pay the workers.

“This will be very tough,” he noted adding that a lot of major companies were also taking sub contracts and orders from the larger ones and due to the uncertainty highlighted in the media it is causing concern among buyers. Mr. Fernando explained that going forward in the US and Europe there is a possibility that demand will slowdown.

He also noted that in the past few months some buyers would have shifted orders out of Sri Lanka to locations like Bangladesh and other countries but this has stopped since the local industry was able to showcase that they are capable of fulfilling the orders.

JAAF spokesman Yohan Lawrence said that operations are continuing inspite of minor issues faced by the industry in the carrying out of their daily work.

“We are trying very hard to cover any gaps,” he said adding that they are currently pushing for orders which are part of the ongoing business.

At the moment the worrying factor is the weakening demand from the markets due to the rising inflation in those markets, he explained.

JAAFspokesmanYohan Lawrence said that operations are continuing inspite of minor issues faced by the industry in the carrying out of their daily work.