SLCGE stresses need to urgently support SMEs as apparel sector grapples with drop in orders

• Says cannot afford to “simply sit back” and wait for a gradual recovery
• Asserts the need to help apparel SMEs increase visibility and network 

As Sri Lanka’s apparel sector is looking at ways to tackle the ongoing challenges faced due to a drop in orders, the Sri Lanka Chamber of Garment Exporters (SLCGE) called for urgent support to safeguard the SME segment.
Although measures have been taken since the pandemic and the economic crisis to help apparel manufacturers stay afloat, the SLCGE pointed out that more needs to be done to help SMEs.

“As an industry that accounts for half of all national exports, we cannot afford to simply sit back and wait for a gradual recovery. We have to take proactive steps to uncover new and untapped opportunities, with special emphasis on how apparel SMEs can be integrated into these supply chains on an urgent basis,” said SLCGE Chairman Bandula Fernando.

He called on industry stakeholders, the government, and regional partners, to step up efforts in this regard.
Fernando pointed out that while the apparel sector has been hit with an order drop of about 20 percent, the SMEs, despite being the worst impacted, we were among the first and fastest to respond to market contractions. 
“Hence, even as the order book contracted, they have ensured that all existing orders have been completely fulfilled to the highest quality standards,” he said.

The majority of Sri Lankan apparel SMEs primarily export to the United States, United Kingdom, EU, and India. To support the industry, the SLCGE has taken proactive measures, engaging in direct market access initiatives through buyer and consumer engagement, Fernando said, pointing out that efforts are underway to explore untapped markets in East Europe, the Middle East, and East Asia. 

“Factories are eager to diversify their market presence and identify new opportunities in non-traditional markets with growth potential. 

“It is essential that we help apparel SMEs to increase their visibility and network in these emerging markets, encouraging them to participate in trade exhibitions, showcase their capabilities, and establish new commercial partnerships,” said Fernando.