The Joint Apparel Association Forum (JAAF) is targeting a turnover of over US$ 3.3 billion, through apparel exports this year.
We expect a turnover of US$ five billion by the end of 2011. The performance of the apparel sector in the first quarter of 2009 was quite impressive, said Secretary General, Joint Apparel Association Forum, Rohan Masakorala.
At present, orders for summer and winter look steady this year, but the SME sectors are going through a bit of a tough time. However, the companies will be better off as soon as the global economy improves.
Due to the global economic downturn most western countries will recover soon as Sri Lanka supplies apparel for them, he said.
Competition among the apparel industry has grown rapidly - locally and internationally. The large-scale companies will catch up the markets while the SME sector is losing possibilities in the industry as they are unable to provide the orders for high quality products and deliver them on time.
Due to the recession most companies have moved into a cost-cutting strategy and at present the companies depend mainly on the Government s Export Development Reward (EDR) scheme. We call upon the Government to reduce taxes in the export sectors, for exports to grow, he said.
The industry is very keen on moving to the Northern and Eastern provinces and there were many inquiries already from companies moving to these areas. The overall potential of the apparel industry is very optimistic.