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20% of apparel factories face 3-month closure after December!

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1 year ago

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November 23, 2023

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Chairman of the Free Trade Zone Manufacturers’ Association – Mr. Dhammika Fernando says that around 20% of the large-scale garment factories in Sri Lanka has decided to close for a period of one to three months, after the December holidays.

He also adds that around 50% of small and medium scale factories have already been closed.

Mr. Fernando states that the income of investors in the garment industry has fallen by 25% due to increased costs and a fall in orders.

In this backdrop, many local investors are looking into the possibility of investing in other countries, he added.

Some investors have arranged for workers to be compensated and laid off. Around 10% of large scale companies have apparently done so.

Meanwhile, it is also reported that some company owners have asked their employees to stay home while paying them either partially or in full.

Mr. Fernando sys that some factories are only open for 4 days a week, while some are open every other week.

In addition to the above mentioned woes, the inability to secure a suitable price for their products have also affected the income levels, according to industry experts.

Mr. Fernando also mentioned that Sri Lankan garment exporters are unable to compete with other countries cost wise.