Apparel industry income to drop by 20% this year
The recent spike in COVID-19 cases at the apparel factories has resulted in an increase in testing in all zones with numbers reporting to work having seen a sharp drop.
FTZ Manufacturers Association General Secretary Dhammika Fernando told the Business Times that the attendance has been markedly reduced due to the restrictions on travel.
At the moment the vaccination drive for factory workers has also stopped, Mr. Fernando said with about 6000 having received the inoculation in Katunayake, 2600 in Biyagama, 1500 in Mirigama, 2000 in Wathupitiwala and 1500 in Horana. Interestingly however, at the Pallekele zone in Kandy all were inoculated.
The vaccination for factory workers in the zones that commenced in April has now come to an abrupt halt with factory officials unaware of the reason for this.
Moreover, there has been an increase in the number of tests carried out inside the zones; Mr. Fernando said adding that as a result there are about 600 tests carried out daily.
Sri Lanka is facing an issue since most of its regional competitors like Bangladesh continue to carry out operations whereas Colombo is facing difficulties due to the outbreak of the third wave.
Meanwhile the industry has also established an isolation centre located in the Katunayake Zone at a cost of Rs.10 million with the funding from investors and the FTZ Manufacturers Association for the benefit of the member enterprises for the zones in the Gampaha district with 500 beds. About 200 beds had been donated by the National Youth Services Council as well for this centre and medical services will be provided by the Negombo Teaching Hospital.
In the meantime, the Sri Lankan apparel industry is likely to see a drop of 20 per cent of their incomes this year as a result of the third wave of the COVID-19 virus that resulted in a drastic reduction of worker capacity at the factories.
At present in addition to the already detected COVID-19 cases and close contacts that are isolated resulting in low worker turnout a further drop is seen due to the fear psychosis of the virus that has now kept people away from work, Joint Apparel Association Forum (JAAF) General Secretary Tuli Cooray told the Business Times.
He noted that “we have created so much of a phobia” relating to the virus as a result of which people are now wanting to stay away from work due to the fear.
Last year the apparel industry lost about 26 per cent of its income and this year the number is likely to be 20 per cent based on the current circumstances, Mr. Cooray said.
JAAF believes that the industry could reach the 2019 figure as a result of which they could end up with about 20 per cent drop in income.
In the meantime, the Sri Lankan apparel industry is likely to see a drop of 20 per cent of their incomes this year as a result of the third wave of the COVID-19 virus that resulted in a drastic reduction of worker capacity at the factories.