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Friday, 27 February 2015 00:00 - - {{hitsCtrl.values.hits}}
By Shehana Dain
The Sri Lanka Chamber of Garment Exporters (SLCGE) partnering with the Sri Lanka Apparel Sourcing Association (SLASA) kicked off the first stage of its 2015 bi-annual event, creating a platform for a B2B meeting between SMEs and international buyers to expand their business potential at the BMICH.
Adhering to the theme of the event, ‘Spend Less and Gain More,’ SMEs were given an opportunity to exhibit their products to attract new buyers at a minimum cost. Exhibitors got a great chance to network in opening up new relationships, creating new business and product ranges. There were exhibitors of fabric suppliers, trim suppliers, and service providers and the B2B meeting featured 15 SME stalls and 12 SLASA associates.
Export Development Board Additional Director General Jeewani Siriwardene along with other EDB officials visited the event. Collectively addressing the meeting, the officials commented that the support given by SLCGE to SMEs was commendable. The EDB officials stated they would assist this event giving it more prominence, building a platform for more entrepreneurs to exhibit their stalls
They further highlighted that they would support the cause by actively involving and directly inviting top buyers especially from South East Asian and South Asian regions by communicating with the relevant commercial divisions of the high commissions and embassies.
SLCGE Secretary Hemantha Kumara said: “The chamber consists of nearly 70 SMEs and 40 of them are functioning at a satisfactory level; the rest are financially sick due to market conditions and domestic cost of funds and other conversion funds.”
He added: “The high interest rates in previous periods was a big blow to SMEs and some companies haven’t recovered yet. We are expecting a better future because manufacturing cost levels in China are increasing, but our efficiency level compared to China are still low.”
SLCGE President Bandula Fernando noted that the main reason big buyers seek SMEs was because of the ability to be flexible and produce smaller quantities, which large-scale apparel manufacturers find difficult.
However, at the meeting the administrative bodies of SLCGE and SLASA represented by Chairman Anil Wettawe pointed out that the existence of marketing teams, financial stability and the ability to obtain funds from overseas at a lower cost to big players made large-scale apparel manufacturers more attractive to international buyers.
Such facilities are not available to the SME sector. The SLCGE Secretary added: “This is why SMEs will always be SMEs.”
It was also stated that newcomers to the sector was at a low level. The officials also emphasised that they were expecting a favourable response in relation to GSP+, which would further accelerate production.
They further stressed the appreciation of the rupee against the euro was a major problem to the apparel sector. The euro currency has dipped from Rs. 176 to Rs. 145 within four months. Hence, Government backing is crucial at the moment, without which 30%-35% of the apparel sector is vulnerable to financial crisis.
In more positive news, despite industry shortcomings, the apparel sector has shown significant growth compared to 2013.
The last B2B event in 2014 resulted in 40% of exhibitors starting a new business partnership with SLASA associates. While noting that it was difficult to present an exact figure, SLCGA officials stated that this year’s event would create up to 60% business opportunities for the SME sector.
Pix by Sameera Wijesinghe
