Sri Lanka Retailers’ Association appeals for lease and rental cuts

Wednesday, 6 May 2020 02:48 - - {{hitsCtrl.values.hits}}

The Sri Lanka Ret-ailers’ Association (SLRA), the apex body for organised retail in Sri Lanka, is urging all landlords and lessors to reduce leases and rentals for its membership.

SLRA President Sidath Kodikara appealed to landlords to provide a 50% concession on rentals/leases for the next six months on properties leased and rented by SLRA members, as many retailers are suffering losses due to the prevailing situation in the country caused by COVID-19.

“The ongoing lockdown has drastically limited all retailers’ ability to operate their respective outlets, thus resulting in more than an 85% drop in revenues across all retail establishments and sectors. This significant drop in revenue has resulted in losses for all retailers; and currently all our membership is struggling to stay afloat,” Kodikara said.

Given the challenges, retailers are in urgent need to cut operating costs, of which a significant component is the lease rental.

“We make this request fully understanding the impact this may have on landlords or lessors. However, this is an urgent need for retail industry – an industry which employs more than 15% of the work force,” he added.

The SLRA currently represents nine sectors in the retail industry, namely FMCG; Clothing, Fashion and Jewellery; Shelter and Housing; Household and Consumer Durables; Footwear and Accessories; E-Commerce; Mobility; Entertainment, Restaurant and QSR; Healthcare and Wellness.