Small- and medium-scale garment exporters seek relief

Seated from left: SMGEA Executive Member Walter Perera, SMGEA President Bandula Fernando, and SMGEA Executive Member Ranjith Tissera. Back row from left: Executive Member Roshan Paranavithana and Executive Member Wasantha Gamage during the press conference held at Sarasavi Exports in Kottawa 

• SMGEA President claims not received concessions given by the Government
• Calls for quick action to protect livelihoods of over 100,000 dependents
• Says 2-month working capital support not enough

The Small and Medium Garments Exporters Association (SMGEA) recently claimed that they have not received the relief package agreed on by President Gotabaya Rajapaksa and the Government.

“It has been very difficult for our members to obtain the financial concessions announced by the Government because all their assets have been mortgaged to the banks. The banks are also granting this loan only for the payment of salaries for the months of April and May, which is clearly not enough to overcome these difficult circumstances,” SMGEA President Bandula Fernando told journalists. 

He also pointed out that some of its members are struggling to pay the salaries for the month of March as buyers have already suspended payments for goods exported.

As the world economy is facing a major blow like no one has ever witnessed, the export sector is also paying hefty prices in the time of the COVID-19 pandemic. The apparel sector, which accounts for a substantial portion of the country’s export income, has taken a massive blow due to the coronavirus situation, which has brought the entire world to a halt.

Fernando pointed out that despite President Rajapaksa’s order that ‘no’ late charges should be collected for goods to be released from the Port of Colombo, some officers don’t heed to the directives, which is unfair to these exporters.

“The Chairman of the Ports Authority is following the President’s directives, but some officers in lower ranks are not ready to release our goods without an ‘extra fee’ for the delays, which were caused due to the curfew. It’s highly unfair,” he stressed. 

According to him, SMGEA has provided over 100,000 jobs directly and indirectly, while they account for about 30% of the total garment production of the country. There are about 80 factories island-wide under the association.

“The impact on the manufacturers registered under our association will directly affect the country’s economy,” Fernando said.

SMGEA Executive Member Ranjith Tissera also said that they are grappling with multiple financial issues, noting that their only concern now is to protect the livelihoods of the employees who are dependent on this industry. 

“Our customers have postponed some of the orders and some have lost the orders while some have deferred payments for our exports. We are facing many financial issues. Given this situation, it is very difficult for us to pay the salaries of these employees for the months of April and May. With no source of income, our members are also unable to repay the capital loans they have already obtained. Our only expectation at this moment is to protect our valuable human resources,” he asserted.

Tissera thereby called on the Government to provide them with concessions outlined in a prompt manner to restore the apparel sector and the livelihoods of over 100,000 families dependent on this important industry, which brings in much-needed foreign exchange.