Though Sri Lanka
enjoyed GSP plus concession from EU, but now loss of this concession
has had a dribbling effect on its apparel exporters even to US, which
is the second largest importer of Sri Lankan apparels…
The psychological effect that one market lays on other is also a reason
for the underlying drop in demand in the US markets. Around 94.5
percent of the Sri Lanka’s overall apparel export is towards two
importers, US and EU, Bandaranaike said…
Sri Lanka’s apparel shipments to US during January to August 2010
registered a fall of 4.6 percent and were recorded at US $833 million,
as against US$873 million during corresponding period last year, he
said. Though, Srilanka positioned itself as the eighth largest supplier
of apparels to the 27 EU nations, but then it was certain to lose this
position with withdrawal of the GSP plus concession on August 15, this
year…
It is a well accepted fact that, loss of the GSP plus concession would
have many adverse impacts on the Sri Lankan apparel sector. It is
apprehended that, as more and more number of European buyers feel that
the country’s apparels are not being able to retain their
competitiveness, may thus, move to producers in other countries, he
added…
Sri Lanka may continue losing a major chunk of its apparel exports to
EU, which is also expected to claim thousands of jobs in the sector in
the short term”
Date:11/23/2010
Source:www.commodityonline.com