Sri lanka garment sector action plan

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Sri Lanka Garment Sector -
Action Plan
CAPITA III

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Vision Statement
 Sri Lanka Apparel manufacturing sector
to aggressively improve its quality
conscious reputation,and become 1st
outsourcing choice for buyers. To
promptly adjust to industry conditions
post 2005 with consistent growth.

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Mission
 Create a quality conscious culture.
 Build a ‘proactive’ culture in marketing and service.
 Build a positive image based on social and human
rights compliance.
 Manufacturers to become aware of the changes
necessary to compete in a quota free environment
 Concentrate on value added services.
 Motivate industry and Government to take quick
decisions.
 Increase value of exports to $3.6 Billion by 2007

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General Objectives
 Educate manufacturers in the threats and
opportunities post 2005 (refer to SWOT)
 Educate manufacturers in the benefits of
establishing quality systems in their
factories.
 Expand market intelligence and
strategies in potential markets.

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Specific Objectives
 Analyze current private and public
understanding of effect of post 2005.
 Post 2005-Control unemployment to reduce fall-
out of direct workers employed in the apparel
industry to 30% (120,000 direct workers).
 Create a quality conscious culture based on
quality systems like ISO 9001.
 Focus attention to EU markets.

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Their best interest - STAKEHOLDERS
 Exporters and their
associations
 Transform to become
market oriented and secure
survival for themselves and
members
• Supporting industries (eg:
forwarders, accessory
suppliers, packaging…)
• Supporting sectors which
depend solely on the apparel
industry will be indirectly
affected by a down turn. It is
also their best interest to
support efforts of survival.
• Sri Lanka based raw
material suppliers
• Demand for their products
would reduce drastically
• Educational and Technical
training and Testing
Institutions
• Services and development of
prospective professionals would
decrease.

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 Government
• Dept. of Inland Revenue
 Sri Lanka depends highly in this
industry for employment and
foreign exchange revenue.
Benefit to maintain jobs and
income for thousands of families
• Revenue to the country
would drastically be affected.
Corporate taxation revenue
would be reduced.
• Power utility suppliers • Reduction of consumption would
increase overheads and
production costs; will affect other
industries.
• Ministers with macro and
micro economic portfolios
• Direct responsibility for
employment creation and
development of economic sector
Their best interest - STAKEHOLDERS

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• Export Development Board • Promotion of exports is their
main objective. Aid to this
sector should be top priority
as they are accountable.
• Ports Authority • Reduction of freight into the
port would reduce their
revenue and capacity.
• Their objective is to improve the
quality standards of the whole
country. Their success will be
based on the amount of
certificates to the apparel
industry.
• Sri Lanka Standard
Institution
• Missions established in target
markets can be a hub for
information to / from potential
customers
• Foreign Missions
Their best interest - STAKEHOLDERS

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• Banks • Most banks, particular government
owned, have a large exposure in
the apparel trade. It is in their best
interest to help.
• Machinery and
Technology suppliers
• Reduction in demand will
jeopardize their existence.
Consultation and Bundling of
products at discounted prices.
• Marketing Consultants • Micro level- aid factories develop
and identify and marketing strategy
• Macro level- aid the industry
develop and identify capitalizing on
our strengths and opportunities.
Their best interest - STAKEHOLDERS

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Objective Action Task Support Priority
Framework for
strategic
implementation
Joint trade
associations/
govt. forum
Associations
Government
Ministry
Of Ent.
Dvlpmnt.
1
Educate SME’s on
post 2005 effects.
Presentation
and open
discussions
Associations and
Industry
EDB 1
Increase quality
awareness and
benefits
Work shops
Training Progs.
Associations
Training Cntrs.
Consultants
CITI
Phoenix
Others
2
ISO 9001
awareness
Work shops and
lectures
Certifying bodies
Certified fctrs.
SLSI
SGS
2
Working Structure

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Establish flow of
consistent market
intelligence
Apparel research
cells in leading
research institutes
Associations
& Industry
EDB 2
Develop specific
apparel marketers
Program where
emphasis is given
to marketing of
apparel
Associations
& Industry
CIM 1
Consolidate
excess capacity
Set up a
subcontract
exchange office
Associations
& Industry
2
Objective Action Task Support Priority
Working Structure

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Objective Action Task Support Priority
Increase social
compliance
awareness and
benefits
Work shops
Training Progs.
In SA 8000 and
WRAP
Associations
Training Cntrs.
Consultants
SLSI
Intertek
SGS
2
Reduce litigation
and unrest with
the labor force
Review and revise
labor laws in
reaction to
possible mass
unemployment
Ministry of
Labour
Associa-
tions
1
Improve SL
image &
professionalism
Infrastructure
developments
external and
internal logistics
BOI 1
Working Structure

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Objective Action Task Support Priority
Review critical
competitive
factors in SL
Seminars
Open discussions
Consultants
Associations
and Industry
EDB
CBI
2
Increase export
value and
maintain
sustainable
growth
Aggressive
marketing in
current markets
Trade fairs
Associations
& Industry
EDB 1
Establish new
relationships and
markets with
emphasis in EU
Market intelligence
Product Development
Associations
& Industry
Foreign
Missions
EDB
CBI
1
Working Structure

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Objective Action Task Support Priority
Implement new
process
technology /
systems to
improve
productivity and
efficiency
Bench-marking
with established
manufacturers.
Training sessions
Association
& Industry
Training
Institutes
SLSI
CITI
1
Working Structure

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END
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