Manufacturers oppose lifting of temporary ban on footwear imports

Expressing concern on the government’s recent decision to lift the temporary ban on all footwear and component imports at the behest of a few local industrialists, Sri Lanka's footwear manufacturers have urged the President to stick to his policy of protecting local industries.

The government has issued new regulation dated July 16, 2020 in a special gazette notification cancelling the previous regulation published on May 21, 2020 of suspending imports of all kinds of footwear.

This will be a severe blow to local footwear manufacturers who were struggling to survive with COVID-19, a spokesman of the Sri

Lanka Footwear and Leather Products Association told the Business Times.

Local manufacturers who account for 75 per cent of the country’s requirement breathed a sigh of relief following the temporary ban imposed on imports and announcement of government strategy to facilitate domestic import substitution industries.

The need of the hour is to impose a complete ban on such imports and not lifting it for the benefit of the segment of legal and illegal importers as well as assembled footwear industrialists, he pointed out.

This sector comprises 10 large companies, 30 medium scale companies and around 3000 small scale footwear manufacturers employing 300,000 people directly and indirectly. Value of this industry is in the region of Rs. 60 to 70 billion.

The Government’s initiative during COVID-19 period to temporary suspend the imports which can be manufactured locally resulted in the rise in market demand and local manufacturers were on the verge of expanding their productions.

Some of these manufacturers have purchased new machinery also to cater to this vacuum created by the imported shoes in the local market, he said.

Under this set up the Additional Director Ministry of Industries and Supply Chain Management convened a meeting of the

Footwear Sector Advisory Council and the Sri Lanka Footwear and Leather Products Association to discuss this issue, he disclosed.

At this meeting, 99 per cent of the members vehemently objected to lifting the ban, he added.

In the latest gazette notification not only shoe uppers and uppers attached to inner soles have been lifted but also all footwear and components under HS code 64 were completely removed.

Hence now anyone can import even finished footwear, he said adding that lifting the ban on import of footwear (under HS 64) will create an adverse impact on the industry and it is against the President’s strategy to strengthen the local industries.