Countrywide hartal costs billions 

• Analysts estimate industrial export income loss is over $ 22 m or Rs. 8.25 b and of that, $ 14 m were apparel export earnings 
• FTZMA Secretary Dhammika Fernando opines yesterday’s hartal was worse than one on 28 April
• NCE Secretary General and CEO Shiham Marikar says members are concerned about continuity of businesses
• Order books for certain apparel companies are empty beyond June
• Stakeholders fear losing valuable customers, losing credibility and investors moving to other destinations

By Charumini de Silva

Sri Lanka lost over $ 22 million or Rs. 8.25 billion industrial export income yesterday, as tens of thousands of workers of Export Processing Zones (EPZ) came out of their factories and staged protests demanding the Gotabaya Rajapaksa-led Government to quit over the worst-ever economic crisis.

The national level hartal yesterday was being carried out after 69 years, bringing the entire economy to a standstill since the demonstrations began, with both State, private sector employees and civil organisations taking part. 

The previous such national level protest was held on 28 April.

“We estimate total industrial exports worth over $ 22 million were impacted by the hartal yesterday and of that around $ 14 million were apparel exports,” Free Trade Zone Manufacturers’ Association (FTZMA) Secretary Dhammika Fernando told the Daily FT. 

Sri Lanka has been hit by months of acute shortages of food, fuel, and medicines, prompting widespread protests countrywide.

With representatives in all 14 EPZs in the country, representing around 1,500 export manufacturers are deeply concerned about prolonged national catastrophe caused by a multitude of issues including wrong decision making and lack of good governance by the country’s administration.

With no factories able to operate in key EPZs – Katunayake, Biyagama and Seethawaka, Fernando said that the investors will surely think twice now on continuity of their business.

None of the containers or vehicular movements inwards or outward the EPZs were allowed by the protesters yesterday.  

“Yesterday’s hartal impact was worse than the one on 28 April,” Fernando said.

Private sector driven export industry is the only steady foreign exchange earner to the economy post-COVID pandemic and unprecedented economic crises.

Following worldwide adverse publicity on hartal yesterday, the stakeholders feared losing valuable customers, losing credibility and investors moving to other destinations. 

“Many of our members are looking at the bigger picture and seeking for long term economic solutions, amidst multiple challenges. They are concerned about the continuity of their businesses going forward,” National Chamber of Exporters of Sri Lanka (NCE) Secretary General and CEO Shiham Marikar told the Daily FT.

The export industries collectively called on the Government and all the parliamentarians just a month ago on the serious economic consequences if fast action is not taken to stabilise the macro-economy. 

The Daily FT learns that order books for certain apparel companies are empty beyond June.

The closure of banks too caused a lot of inconveniences to many businesses and particularly to exporters.

In 2021, Sri Lanka’s exports recorded $ 15.12 billion, up by 23% from 2020 sustaining its resilience, despite an unprecedented economic crisis. The year 2021 performance comes second only to $ 15.91 billion recorded in 2018.