Small and medium scale garment exporters seek relief from financial blow
While the world economy is facing a major blow that no one has ever witnessed, Sri Lanka’s export sector is paying a heavy price during the COVID-19 pandemic.
The apparel sector, which accounts for a substantial portion of the country’s export income, has taken a massive blow due to the coronavirus situation which has brought the entire world to a halt. With companies continuing to suffer with heavy losses, President Gotabaya Rajapaksa and the government have introduced several concessions.
However, the President of the Small and Medium Garments Exporters Association ( SMGEA), Bandula Fernando, has said that their members are still not receiving any of the relief benefits agreed by the President and the government.
Speaking at a press conference held in Kottawa, Mr. Fernando said, “The financial concessions given by the government has been very difficult for our members to obtain. That is mainly because all their assets have been mortgaged to the banks. Also, banks are granting this loan only for the payment of salaries during the months of April and May, which is clearly not enough to come out of this difficult situation. Some or our members are even struggling to pay the salaries for the month of March.”
“The President ordered that there should be no late charges for goods to be released from the harbour. Even the Chairman of the Ports Authority is following the President’s directives. However, the officers in lower ranks are not ready to release our goods without an extra fee for the delays which are caused due to the curfew. It’s highly unfair,” he said.
The association has provided over 100,000 jobs directly and indirectly and exports about 30 per cent of the total garment production of the country.
“There are about 80 factories islandwide under our association,” Mr. Fernando said, noting that the impact on the manufacturers registered under the association will directly affect the country’s economy.
Executive committee member of the association Ranjith Tissera said, “We have lost many orders and some orders have been postponed. Foreign buyers have also suspended payments for goods exported by our members. This kind of a situation makes payment of salaries of employees of these factories for April and May a huge problem. With no money coming in, our members are also unable to pay back the capital loans they have already obtained. Our only expectation at this moment is to protect our valuable human resources.”
“Therefore, we are requesting the government to provide us with concessions and give us some sort of relief so that we can protect this industry which brings foreign exchange to the country. If we fail to act as soon as possible and don’t do what is necessary to quickly restore the apparel industry, it will be a huge loss for the country,” Mr. Tissera told reporters.