Apparel exports dip with low interest from Europe

Monday, 31 January 2011 00:01 - - {{hitsCtrl.values.hits}}

Sri Lanka’s apparel industry has started 2011 with a temporary crisis in its export segment — a continuation of the dip which was seen in the fourth quarter of 2010.

However, the plunge is not attributed to the loss of GSP+ but to the dwindling demand in Europe and US for apparel, especially the high fashion industry in which Sri Lanka specialises, officials of Emirates cargo operations told Daily FT in a recent interview in Dubai.

Emirates, which holds a 20% market share in the Sri Lankan flight cargo segment, stated that the dip in the apparel export which began in the last quarter of 2010 had continued in January and was in a provisional crisis as at now.

“ However this is a temporary crisis. The loss of GSP+ has not played an important role in the decreasing of the export volumes of apparel but rather it is the overall impact of the now thrifty Europe and America,” Emirates Regional Manager Cargo Commercial Operations Asia and Australasia Ravishankar Mirle said.

“Europe was under snow. Before Christmas there was a surge for apparel, but the Christmas sales were not as high as expected. This, coupled with the uncertainty in the European market with the countries still recovering from the global crisis, was the reason for the fall of exports of apparel,” Mirle said. The cargo plays a vital role in importing fabrics and accessories for the apparel sector, pharmaceuticals and frozen foods from Australia, amongst others.

The situation is not only limited to Sri Lanka, but also to other apparel manufacturing countries such as Cambodia, Vietnam, Bangladesh, Pakistan, India and the Mauritius. Being a major high fashion manufacturer, Sri Lanka did not see a deterioration in demand even during the war, Mirle said.

Tuna manufacturing from Sri Lanka is another major export which reaches the shores of UK, France, Spain and Rome on a minimum of two flights a day. Fruits and vegetables coming from the north and east is also a prime commodity going to Europe and the Netherlands, he asserted. Ornamental fish for aquariums in Europe and betel leaves to Pakistan are also some of key Sri Lankan exports.