Wednesday, September 30, 2009

Garment factories closing like ‘nine pins’

Half of the country's garment factories have been closed after the quota system ended in 2005, and garment factory owners fear that another set of factories will close if Sri Lank does not get the GSP+.

However, authorities are still unaware of the number of garment factories operating in the country.

UNP Parliamentarian Lakshman Kiriella said that out of the 789 garment factories that existed in the country, 589 have been closed and only 200 were functioning at present.

Media Minister Anura Yapa said that there are only 370 BOI registered factories in Sri Lanka. The Minister admitted that some companies have closed as usual in the business sector --- but many more have been earmarked for closure shortly

When LAKBIMAnEWS contacted the Apparel Exporters Association, Rohan Masakorala, general secretary, he said, "When the quota system came to an end in 2005 nearly 400 factories closed but after that I am not aware of recent figures." He added, "Though factories closed down the industry expanded. But with global recession, the sector shows a downward trend.’’

© Lakbima News

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