Despite the marginal increase in merchandise export revenue in February 2024, the apparel export revenue value has declined due to excess supply relative to the global demand resulting in further pricing pressure to the exporters, The Daily Morning Business learnt.
Speaking to The Daily Morning Business recently, Joint Apparel Association Forum (JAAF) Consultant Yohan Lawrence stated: “The recent strengthening of the LKR (Sri Lankan Rupee) places exporters in a difficult position as companies would have budgeted at higher exchange rates than we are now able to get.”
According to the recent statistics provided by the Central Bank of Sri Lanka (CBSL), the apparel export revenue during the same month has declined year-on-year by 2.06%.
Lawrence further said that the exporters are yet required for the mandatory foreign exchange conversion which takes away any flexibility that the exporter had in terms of timing and rates of conversion.
“This also has a direct impact on the profitability of the exporter and will be a particular concern for apparel exporters in the SME sector,” he pointed out.
Moreover, Lawrence said that whilst on the face of it February has been “quite a strong month” for the apparel exporters.
“This is off the back of a fairly weak January,” he elaborated.
Overall the first couple of months of 2022 were down about 3% from 2023 and still at around 20% less than 2022 which was one of their (apparel exporters) best years.
Source: the Morning