Sri Lanka Apparel industry is facing the repercussions of Foreign exchange crisis in the country as it has become difficult to cater to the needs of foreign orders on time owing to issues of importing accessories needed for their factory production process.

The Joint Apparel Association Forum of Sri Lanka (JAAF) called for intensive dialogue and greater stakeholder collaboration in order to resolve the current forex crisis, as well as legislative reform towards a more sustainable medium-long-term trajectory for Sri Lankan apparel.

These views were expressed at the recent Annual General Meeting (AGM) of the Association, the apex body representing five associations encompassing supply chain partners, the export-oriented apparel manufacturers, buying offices and representatives of international brands in Sri Lanka.

Addressing the gathering, newly appointed Chairman of JAAF and Deputy Chairman of MAS, Sharad Amalean commended the resilience demonstrated by the sector in the face of an unprecedented pandemic and outlined measures necessary for the sector to achieve its target of US$ 8 Bn in exports by 2025, while maintaining GSP+ and enhancing bilateral trade.

“Once again, Sri Lankan apparel has delivered an outstanding performance, achieving over US$ 5 Bn in exports last year amidst various challenges. 

While highly commendable, there are still many obstacles ahead of us. In order to successfully navigate these uncertain times, it is essential that all stakeholders act with unity, and continue to engage in dialogue with authorities on issues pertaining to foreign exchange and the adoption of regulations that can ensure sustainable growth for our vital industry,” Amalean stressed.

“We must also continue to enhance our bilateral trade by engaging with regional partners and associations to enhance trade relations. The securing of a GSP+ extension beyond 2023 will be absolutely critical for the growth of our industry,” he added.

Meanwhile, outgoing JAAF Chairman, A. Sukumaran noted that the industry would likely face continuing disruptions to their supply chain over the coming year, making the need for continuous engagement across industry stakeholders an essential prerequisite to developing long-term solutions to the industry’s current and future challenges.

“The pandemic exposed underlying vulnerabilities in our extended global supply chains. However, we do not believe that the right answer is to simply turn our backs to internationalization and build overlapping national supply chains – as had been advocated by certain quarters. 

Even with the current issues we face, the theory of comparative advantage within globalization is still a more financially viable approach. However, we also need to identify select areas in which development of domestic capacity can support Sri Lankan firms to effectively compete on a global stage, and ensure that such capacity development is expedited as much as possible.”

“Investing in less transactional and more collaborative supply chain relations will provide major solutions. This forges more resilient supply chains that are also more capable of dealing with our industry’s numerous challenges. 

We have thrived with our buyers on long-lasting relationships. We must do the same thing with supply chains as well. Balance strategies are a must for us to sustain ourselves on the sourcing map,” Sukumaran added..Meanwhile, Founding Secretary-General of JAAF Tuli Cooray stepped down from his position and will serve as a consultant moving forward. He will be replaced by Industry veteran Yohan Lawrence, Past Chairman of the Sri Lanka Apparel Exporters Association

25^th January 2022

Taking a pledge to combat the detrimental environment pollution caused by plastic waste, New Anthoney’s Farms (Private) Ltd, with an undisputed reputation in the nation’s poultry sector shifted to 100pct compostable packaging, making it the first and only poultry producer in Sri Lanka to embrace biodegradable measures in their food packaging process.

These biodegradable packaging of their infamous HarithaHari chicken range is produced from renewable sources such as plant-based materials such as starch, cellulose, plant oil, sugar, reed to name a few, which can be safely consumed and degraded quickly. The company identified the crucial and timely need to adopt alternative eco-friendly packaging as plastic waste recycling only brings about short-term solutions. 

New Anthoney’s Farms was able to successfully develop flexible film formats that enabled deliver the functional requirements of the consumer-facing packaging that can be recyclable or compostable. 

‘The move to switch all our packaging to 100pct biobased and biodegradable is part of the company-wide efforts in sustainability and environmental commitments. Our R&D is constantly exploring ways in developing sustainable packaging across our product portfolio by collaborating with key research institutions, experts and academia,’ said its CEO Neil Suraweera.

According to statistics, Sri Lanka’s plastic consumption is well beyond 15pct annually and out of the hundreds of thousands metric tons of raw plastic materials imported, around 70pct counts for domestic usage. Adding to this is the dire need to counter the vast land and marine pollution that has been challenging the country’s ecology.

In the recent months, the country is undoubtedly increasing its awareness for responsible plastic disposal measures and going beyond this, producers and manufacturers are now pledging to go for packaging that are reusable, recyclable, or compostable. And New Anthoney’s Farms takes great pride in being the first producer in the poultry sector to adopt this. 

The company is also the only poultry producer in Sri Lanka to have been bestowed with the Greenhouse Gas (GHG) Verification Statement validation from Netherlands-based Control Union, in accordance with its ISO 14064-1:2018 standards. New Anthoney’s Farms continues to strengthen its commitment through a wide range of initiatives primarily based on conserving and preserving environmental and societal values. 

Established in 1986, today New Anthoney’s Farms has evolved to a household brand that is synonymous with providing nutrient-rich, antibiotic-free, delicious meat that has garnered utmost trust and quality among consumers. It is a GMP, HACCP, and ISO 22000 certified company holding both local and international halal accreditations and adheres to stringent global poultry standards and compliance. 

The government has decided to hold discussions with Indian authorities to explore possibilities of directly obtaining electricity from India. 

 India is expected to release the US$ 500 million from its credit line granted to purchase fuel for the island nation soon, Finance sources divulged.

 Sri Lanka and India will hold discussions on cross-border energy trade (CBET) between India and Sri Lanka, a high level official of CEB said.

This study builds on several prior analyses that have been conducted on a potential high-voltage direct current transmission link between India and Sri Lanka. 

CBET, enabled by a 500-MW high voltage direct current transmission link, could generate annual production cost savings of US$ 180 million and improve power system operations, he disclosed  

Generation from relatively expensive natural gas plants in Sri Lanka is displaced by lower cost imports from India, he added.

Meanwhile The Public Utility Commission Chairman said that a definite decision on the power cuts in the country will be taken on Monday 31 

In addition, increased flexibility through exports reduces RE curtailment in India’s Southern region by 8.5%, or 400 GWh, annually. 

While the ongoing study captures many previously unconsidered intertemporal operational constraints, it does not provide a complete characterization of system operations with a high-voltage direct current interconnection. Additional work should include a dynamic analysis of system stability following interruptions to the direct current interconnection, an AC power flow analysis and consideration of any non-technical barriers  to trade which might prevent the optimization of CBET between India and Sri Lanka at 30-minute timescales, he  explained

Galle Port City development   will come up within the next few months giving a new impetus for the Southern province under the Galle Port Development programme.

This land reclamation project using dredging material of harbour basin and access channel is expected to increase the Galle City land area by another 40 hectares.

The Sri Lanka Ports Authority SLPA added that a state-of-art cruise terminal will be constructed, retaining the colonial heritage architecture for cruise clients.

This was revealed at the ceremony organized in connection with the ‘Galle Port Development Symposium 2022 worked off on Wednesday (January 26) to unveil the Sri Lankan government’s plans to develop Galle Port as a fully-fledged tourist port.

According to the Sri Lanka Ports Authority (SLPA), the expected investment is US 175 million.

The return on investment from the project is ensured with promising demand for real estate developments connected with tourism, the SLPA said further, noting that this project is open for potential investors through the Expression of Interest (EOI) and Request for Proposals (RFP) process.

Plans are drawn up to develop the Galle port with the establishment of a “Yacht Marina Zone”.The SLPA will develop the existing Port of Galle to accommodate the increasing demand for freight handling for Sri Lanka as well as an international regional destination.

Construction of a deep-water passenger vessel terminal and breakwaters, dredging of entrance channel and basin, and other facilities at the port of Galle to contribute to the economic development of the country are in the development plan which was floated for several years by many successive governments.

After the completion of the development, all passenger vessels can also be docked at the Galle outer port area.

The SLPA said the need to develop the Galle Port under the theme of ‘Tourist Destination and Secured Port’ has been identified and this will enable the maintenance of the Galle Port as a regional commercial port.

The Ministry of Ports and Shipping has planned to implement the Galle Port Development Project under a public-private joint partnership project.

Addressing the event, Ports and Shipping Minister Rohitha Abeygunawardena assured that local and foreign investors would be encouraged and provided with all necessary facilities expeditiously.

 The development project will fulfill macroeconomic objectives of achieving people-centric economic aspirations, he said further.

Meanwhile, the SLPA chairman Dr. Prasantha Jayamanne noted that this development project is certainly going to provide many new opportunities not only to local and foreign investors but also to the people of the area as a catalyst to the local economic development.

Under this project, two offshore breakwaters having 850m and 150m length will be constructed to maintain the sufficient calmness in the Galle bay and harbour.

Further, a cruise berth having 150m length and 12.5m draft to accommodate the largest cruise vessels in the world will also be constructed.

In addition, a land reclamation project using dredging material of harbour basin and access channel is expected to increase the Galle City land area by another 40 hectares.

The SLPA added that a state-of-art cruise terminal will be constructed, retaining the colonial heritage architecture for cruise clients.

It also pointed out that this development venture would generate hundreds of thousands of direct and indirect employment opportunities for local communities.