Slow demand results in apparel export facilities’ temporary closure

monson

Well-known member
  • May 7, 2007
    16,276
    9,506
    113

    Sri Lanka’s leading apparel exporters are temporarily closing down their facilities and relocating employees to cut down on operational costs as the apparel orders drop by 20-25% due to the slowing global demand, an official said.
    Speaking to The Daily Morning Business, Board of Investment (BOI) Executive Director (Zones) Lawrence Madapatha said that there is a 20-25% drop in orders for some apparel products due to the slowing demand in markets such as the US and Europe.
    Therefore, he said some of the leading apparel exporters in Sri Lanka have started to curtail or relocate their employees to other facilities in order to save on operational cost.
    Speaking to Reuters earlier this month Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence said that due to slow global demand apparel export revenue in 2023 could drop to $ 1 billion while expecting the demand to pick up by the end of the year.
    Madapatha said that apparel exporters who cannot cover the operational costs of all the facilities they have with the order in hand have relocated their employees to other facilities while temporarily closing down some of their facilities, provided that they can complete the orders with the remaining facilities in operation.
    He said that Brandix have done so, where they have temporarily closed down two facilities and relocated the employees to other close by Brandix facilities.
    Moreover, he said that social media posts circulating about the closing down of the Hirdaramani facility in Meepe need to be more accurate.
    He said he was informed by the owners of Hirdaramani that they are temporarily closing down the facility in Meepe and relocating its employees to other facilities as they cannot cover the operational cost as the facility is leased.
    “After the orders start to pick up the facility will be reopened,” Madapatha confirmed.
    He noted that Hirdaramani facilities in the Katunayake and Seethawaka BOI zones are currently operating.

    Further, he said apparel exporters such as Brandix, MAS, Hirdaramani, and Isabella are currently lobbying their buyers, therefore, there could be an uptick in orders in the next few months as a result of it.

    - https://www.themorning.lk/articles/yhWoSyivhbd2GfKzp1Kl