Best working practices lead to steady growth in Srilankan apparel exports

Sri Lanka is quietly and firmly closing the lead in exports of apparels andgarments over its competitor countries like India, Bangladesh, and Vietnam. Exports of apparels from the island country have depicted a steady and stronggrowth in the last few years.

In a comparative study for the period 2005-08, shipments ofapparels both knits and wovens in the first six months of each year, grew bynearly 20 percent in 2008 when evaluated with the same period of 2005.

Exports which stood at US $1274.3 million in the first halfof 2005 rose to $1325.6 million in the same period of 2006, which againaugmented to $1515.8 million in 2006. But the same growth though, could not besustained in the first half of the current year and could touch only $1523.8million.

Apparels manufactured from woven fabrics have managed to getthe highest share of total garment exports from the island except for in 2008,when apparels made from knits managed to close the gap, albeit with a minisculedifference of just $15 million.

Shipments of woven apparels which were $787.8 million in thefirst six months of 2005, dipped to $742.7 million in the corresponding periodof 2006, but were able to reverse the trend in 2006 to close at $782.9 millionbefore once again slipping to $755.5 million in the first half of 2008. Incomparison to 2005, exports of woven apparels could manage to grow by only 4percent in 2008.

In contrast the real growth has come from exports of knitapparels. Exports of knit apparels which stood at just $464.8 million in thefirst half of 2005, ascended to $565.0 million in the corresponding period of2006 to post growth of a stupendous 21.55 percent.

In 2007, shipments of knit garments in the same periodmounted to $701.0 million to once more register a growth of an awesome 24percent over 2006. Compared to the high growth rates of 2006 and 2007,shipments grew by a modest 5.56 percent to touch $740.3 million in thecorresponding period of 2008.

There is no doubt that, exports of knitted apparelscontributed in no small measure to the overall foreign trade in garments. Whenappraised with figures of 2005, shipments of knit apparels in the first half of2008 grew by a stunning 59.27 percent in contrast to a marginal growth of just4 percent posted by woven apparels in the same period.

Comparative data for exports ofapparels of first six months of 2005 - 2008

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Source: Joint Apparel Association Forum, Sri Lanka

Sri Lanka's apparel industry is a major contributor to the country's economy. After its modest beginnings in the seventies, the industry today represents 43% of the country's total exports and contributes 39% to the industrial production of Sri Lanka.

The steady growth in shipments of apparels has come about for a variety of reasons. The Sri Lankan apparels exporters were one of the first to understand the implications of adhering to the strict import laws of the European Union and implement the same in a joint collective spirit.

The Sri Lankan Apparel Industry had also launched a campaign to introduce their new industry-appropriate trademark-'Garments without Guilt' in November 2007. The 'Garments without Guilt' initiative focuses on ethical manufacture and sustainable development assuring the industrys commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices.

It was the only outsourced apparel manufacturing country in Asia which has signed up to 39 of the ILO (International Labour Organization) conventions. Additionally, Sri Lanka has ratified all 8 of the core labour conventions of the 1998 ILO 'Declaration on Fundamental Principles' and rights at work.

Other than the above, well known companies like Brandix and MAS Holdings have taken a lead in implementing environmental friendly initiatives which are close to the hearts of the big & reputed buyers of the European Union and USA.

All this in turn has resulted in the Sri Lankan apparel exporters gaining a good reputation across the globe and as a consequence have seen their business growing steadily year by year.