8.Sri Lanka Mr Janaka Botejue

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8.Sri Lanka Mr Janaka Botejue

  1. 1. Weaving The Fabric Of Regional Co operation for A Competitive Garment Sector By Janaka Botejue Sri Lanka Apparel Exporters Association
  2. 2. Quota Phase Out <ul><li>Impact of Quotas </li></ul><ul><ul><li>Created trade barriers and disintegrated the supply chain. </li></ul></ul><ul><ul><li>Protected certain countries at the cost of more competitive countries. </li></ul></ul><ul><li>Effects of quota phase out </li></ul><ul><ul><li>Country production shares redefined based on competitiveness </li></ul></ul><ul><ul><li>Shipment prices likely to go down further due to competition </li></ul></ul><ul><ul><li>Lead times further squeezed </li></ul></ul><ul><ul><li>“ Operational Excellence” and “Meeting Buyer Needs” more important than ever </li></ul></ul><ul><ul><li>Necessity to offer more services to buyers (beyond just products) </li></ul></ul>
  3. 3. Introduction to Sri Lankan Apparel Sector Source: Central Bank Annual Report 2004
  4. 4. Sri Lankan Exports Source: Sri Lanka Customs
  5. 5. Sri Lankan Exports Source: Sri Lanka Customs
  6. 6. Strategic Objectives of Sri Lankan Apparel Industry <ul><li>Increase the Sri Lankan apparel industry turnover from its present level of US $ 2.30 billion to US $ 4.5 billion By 2007. </li></ul><ul><li>Transform the industry from a “ manufacturer” to a provider of a “ fully integrated service”. </li></ul><ul><li>3. Increase market penetration to the premium market segments of the global apparel industry. </li></ul><ul><li>4. Become internationally famous as a superior manufacturer of specific product categories. </li></ul><ul><li>Consolidate and strengthen the industry to meet the challenges of the free market. </li></ul>
  7. 7. SWOT Analysis <ul><li>Rapidly changing trends in the retailing industry. </li></ul><ul><li>The former socialist countries and the East European </li></ul><ul><li>nations potential to become major suppliers for the EU </li></ul><ul><li>Market. </li></ul><ul><li>Global formation of bi-lateral and multi-lateral trade </li></ul><ul><li>blocks. </li></ul><ul><li>New entrants to the industry. </li></ul><ul><li>Emergence of efficient international shipping hubs </li></ul><ul><li>in the Asian region. </li></ul><ul><li>Sri Lanka to become a total service provider for the </li></ul><ul><li>global apparel industry. </li></ul><ul><li>Promote Sri Lanka as a socially responsible </li></ul><ul><li>manufacturer of apparels. </li></ul><ul><li>Transition to products that require a high labour </li></ul><ul><li>content. </li></ul><ul><li>The positive impact of the government’s peace </li></ul><ul><li>initiative. </li></ul>Threats Opportunities <ul><li>Isolation from trade partners and heavy </li></ul><ul><li>dependence on local buying agencies. </li></ul><ul><li>Lack of geographical diversification in terms of its </li></ul><ul><li>overseas markets. </li></ul><ul><li>In-sufficient international and bi-lateral trade </li></ul><ul><li>agreements to support the industry. </li></ul><ul><li>Increasing cost of labour compared with other countries in </li></ul><ul><li>the south Asian region </li></ul><ul><li>Inadequate focus on developing backward integration </li></ul><ul><li>linkages to support the industry. </li></ul><ul><li>Non-existence of product design and new product </li></ul><ul><li>developments. </li></ul><ul><li>Non- existence of a Sri Lankan brand identity. </li></ul><ul><li>Low productivity of labour, inefficient use of machinery and </li></ul><ul><li>manufacturing processes. </li></ul><ul><li>The relatively high cost of utilities. </li></ul><ul><li>Reputation of being a quality </li></ul><ul><li>apparel manufacturer for the </li></ul><ul><li>mass market. </li></ul><ul><li>Compliance with International </li></ul><ul><li>Labour regulations. </li></ul><ul><li>Relatively disciplined and skilled </li></ul><ul><li>labour and a trainable work force. </li></ul><ul><li>Reputed International Customer </li></ul><ul><li>base. </li></ul><ul><li>On-time delivery of standard “all- </li></ul><ul><li>season” products. </li></ul>Weaknesses Strengths
  8. 8. <ul><li>Regional Corporation / Cartel </li></ul><ul><li>Regional Trade Blocs </li></ul><ul><li>Regional Manufacturing Blocs </li></ul>The way Forward
  9. 9. Much needs to be done <ul><li>However to create a manufacturing bloc, inter regional co-operation is a must. </li></ul><ul><ul><li>Current inter-country trade is low </li></ul></ul><ul><ul><li>Red tapeism and bureaucracy present an unfavorable picture to the world </li></ul></ul><ul><ul><li>Political situations and cross-border tensions </li></ul></ul><ul><ul><li>Inter country Tariff structures need to be rationalized to establish Free-trade among the members </li></ul></ul><ul><ul><li>Even business travel is not smooth </li></ul></ul><ul><li>Leaders of the industry must focus their attention in getting into partnerships with leaders in other parts of chain so as to offer “Virtually Vertical Supply Chain” to their customers. </li></ul>
  10. 10. Thank you !

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