Sri Lanka’s textile industry eyes opportunity amidst Bangladesh unrest
The Morning: The current political and social unrest in Bangladesh represents an opportunity for the Sri Lankan textile industry to capitalise on, according to the Export Development Board (EDB).
Speaking to The Sunday Morning Business, EDB Chairman Dr. Kingsley Bernard stated that the prevailing political and social instability in Bangladesh had disrupted the operations of its textile industry, thereby representing an opportunity for the Sri Lankan textile industry to capitalise on.
Elaborating further, he stated: “It is a question of supply and demand. Bangladesh’s production facilities may be disrupted and they will not be able to supply the quantities that have been ordered already. Their next option will be to come to either India or Sri Lanka.”
He stated that upon speaking to several stakeholders in the textile industry, he had been informed that Sri Lanka would see an uptick in garment orders as a result of the current instability in Bangladesh.
However, speaking to The Sunday Morning Business, Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence cautioned that any spillover from the current political and social instability in Bangladesh would most likely be short-term and was unlikely to be a gamechanger for Sri Lanka.
He stated that success in the apparel industry depended on timely delivery of quality products. In that regard, it is likely that some buyers may seek alternative sources to ensure the continuity of their critical orders.
“Given Sri Lanka’s proven agility, sophisticated production capabilities, and the fact that we certainly have the spare capacity, some foreign buyers will likely turn to Sri Lanka to at least temporarily fill these gaps, at least until the situation in Bangladesh normalises. This was very much the dynamic that we experienced during our own crisis.”
OSL take:
While there was a growth witnessed in Bangladesh’s apparel industry in the past few years, the growing unrest in Bangladesh has resulted in many foreign businesses/investors who have set up operations in the country to explore other destinations to shift operations. Sri Lanka has topped the list of new destinations to set up operations. Sri Lanka’s economic resilience and the ongoing expansion have captured the attention of many foreign businesses/investors. Also, Sri Lanka’s strategic positioning in the Indian Ocean, the many trade agreements and trade concessions enjoyed with other countries and the target of becoming a regional hub have all helped boost Sri Lanka as an emerging business destination in the region. Key among the growing business/investment opportunities in Sri Lanka is the apparel industry. Local export authorities meanwhile are also focused on capturing the opportunities that present for Sri Lanka due to the unrest in Bangladesh for local exports while continuing with the aggressive overseas promotional campaigns to expand the market for Sri Lanka. Given the growth and business potential in Sri Lanka’s export industry, foreign businesses/investors could confidently explore the business/investment opportunities in Sri Lanka.