JAAF Secretary General Yohan Lawrence, Chairman Sharad Amalean, Deputy Chairman Saifudeen Jafferjee and Deputy Chairman Felix Fernando

The Joint Apparel Association Forum (JAAF), the apex body that guides Sri Lanka apparel towards its ultimate goal of being the world’s number one apparel sourcing destination, held its 19th Annual General Meeting (AGM) recently, reappointing industry veteran Sharad Amalean as Chairman.  

It also unanimously re-elected its Executive Committee, including Saifudeen Jafferjee and Felix Fernando as Deputy Chairmen. 

Delivering the Chairman’s address, Amalean highlighted that the JAAF identifies the importance of bringing in a new generation of young leaders with motivated youthful energy to drive the apparel industry beyond 2025.

He stressed that while the past year has not been easy, the credibility the JAAF has sustained over the years has undeniably aided the industry to work closely with the government, relevant authorities and regulatory bodies. This has been a key driver in the ease of doing business in an unprecedented socio-economic fabric, a competitive edge in a challenging business climate.

“2022 was a defining moment for Sri Lanka. The textile and apparel sector should be proud that we prevailed and achieved a turnover of Rs.5.5 billion at the end of last year. I thank our stakeholders, team members and associates working in manufacturing plants all over the country for this achievement,” stated Amalean. 
He concluded his address with the reminder to adopt a positive outlook for 2023, as the International Monetary Fund assistance is on the horizon.

Sri Lanka Apparel Exporters Association Past Chairman Aroon Hirdaramani stressed that 2023 would be a challenging year with inventory pile-ups and an increase in costs and input prices.  “Luxury brands will go on to do better than others, with the US being in a superior position globally,” he noted in his address. Highlighting vital policy priorities crucial for the industry to optimise potential in 2023 and beyond, JAAF Secretary General Yohan Lawrence pointed out that 2022 has been a year of mixed fortunes for apparel exports, starting off with a promise but seeing declining growth in the last months of 2022.

“The global recession, overstocking of retail goods in warehouses and impact of the Ukraine-Russia war on global supply chains took their toll. While Sri Lanka ended 2022 with exports worth US $ 5.5 billion, which is nearly a 10 percent increase from previous years, a closer look at the data reveals a worrying trend.”

He quantified Bangladesh’s US $ 45 billion export industry growing by a massive 28 percent as against Sri Lanka’s year-on-year of 10 percent. 

“This growth in Bangladesh indicates that competitor nations are gaining market share from Sri Lanka. We comprise only 1 to 2 percent of global trade and this will reduce if the government fails to take immediate action.” 
He noted that with Bangladesh classified as a Least Developed Country (LDC), it has unrestricted access to the EU and UK, while Sri Lanka’s GSP+ and DCTS programme dictate rules of origin, allowing only 50 percent of exports qualifying for duty free access to those countries.

Lawrence clarified that the JAAF had made continuous representations to authorities for relaxation on the rules of origin for both the EU’s GSP+ and UK’s DCTS schemes, on the reasoning that Sri Lanka should be considered as an LDC, given the unprecedented economic crisis. 

He further explained that India’s duty free access for Sri Lanka’s apparel allows only eight million pieces and that too unfairly counting a pair of socks or gloves as two pieces under the quota. While thanking the Commerce Department for its efforts to ship out the full quota to India, Lawrence highlighted that the JAAF intends to work towards having the quota used at the highest FOB values in 2023. 

The AGM was also joined by the JAAF’s constituent associations. Fabric and Apparel Accessory Manufacturers Association Chairman Pubudu de Silva thanked the JAAF for its efforts in sustaining operations during trying times, stressing that the challenges ahead are not unique to Sri Lanka. 

“With collaboration, the industry can undoubtedly emerge victorious,” he said. 
Sri Lanka Apparel Sourcing Association Vice Chairman Azmina Kareem commended the industry for its resilience in the face of adversity, highlighting that global retail and consumer priorities are rapidly changing, due to the declining disposable income. 

“Buyers are under massive pressure to face changing customer needs while maintaining margins and sourcing agents will have to step up.”

Sri Lanka Chamber of Garment Exporters Assistant Treasurer Menuka Gunawardana expressed appreciation to the JAAF for sustaining the industry, given the hardships faced by the SMEs through the pandemic and economic crisis.

Free Trade Zone Manufacturers Association Chairman Jatinder Biala appreciated the JAAF’s role in providing leadership for the industry and urged the authorities to reassess the social security levy and increase in corporate taxation and electricity tariffs, which would impact the industry’s competitive edge significantly.