Due to the fragility in international supply chains made evident by the COVID-19 pandemic there has been a shift by major apparel purchasers and producers to diversify their supply chains. With the soon to be opened Eravur Fabric Park and other similar endeavours, the Joint Apparel Association Forum is expected to double its locally procured material from US$ 900 million to US$ 1.8 billion.
JAAF Secretary General Tuli Cooray noted that Sri Lankan’s apparel sector historically has remained mainly an assembly hub for articles of clothing. He noted that Sri Lanka’s share of the international market peaked in 2010 where it had 2% of the global market share and the latest figures show that the country only has 1.8% of the market share. Cooray was shocked to see how nations like Bangladesh had grown their share over 7 times and that even India is now ahead of Sri Lanka.
 |
|
General Secretary Tuli Cooray and BOI Chairman Sanjaya Mohottala
|
Cooray was speaking on 25 June at a press briefing organized to detail the HSBC funded ‘Roadmap towards a greener apparel sector’. Cooray noted that the sustainability initiatives undertaken by the sector were concentrated in a few firms and that smaller players were not carrying their fair share.
Cooray estimates that only between 20-30% of companies engage in sustainability practices and the reason the country can maintain its sustainability image is due to the fact that these companies make up 70-80% of the product that is exported. Cooray highlighted the need to create sustainable energy sources as buyers were conscientious about the sustainability of the entire supply chain for apparel. Cooray however noted that the sector was very price sensitive and further that buyers historically had restricted the country from branding itself as a sustainable producer.
JAAF having witnessed success with its Garments without Guilt program is expected to launch a new drive showcasing sustainability initiatives. Cooray noted the value of the sustainability initiatives but when asked about implementation he said, “First show me the ROI.”
The major producers have already invested in sustainability initiatives with the likes of LEED-certified buildings and are looking to build life cycle analysis into their products. The apparel sector is expected to invest heavily in making sure that all apparel articles are either recycled or disposed of sustainably.
Industry stakeholders called on the government and other regulatory agencies to put a stronger framework on the management of water pollution to allow the apparel sector to gain global recognition as a global leader in sustainable water use practices.
BOI Chairman Sanjaya Mohottala noted the need for sustainability practices as a mechanism to generate high-value addition and profitability within Sri Lanka.
0 comments: