According to the Ministry of Investment Promotion and the Garment Factory Owners’ Forum, there has been a decrease in garment orders from America and European countries.
State Minister for Investment Promotion Dilum Amunugama said that due to global inflation, garment orders received in Sri Lanka have decreased by 18%.
Yohan Leverance, Chairman of the Garment Factory Owners’ Forum, who says that this situation has become a serious problem for the running of garment factories, said that the current orders received are only enough for two months.
Stating that orders will be received again after September, the chairman also mentioned that this situation has affected not only Sri Lanka but also garment factories in countries like Bangladesh, Vietnam, Cambodia and China.
Director General Renuka Weerakoon stated that despite the current global economic crisis and domestic political and economic instability, the Sri Lanka Board of Investment has managed to achieve a 38% increase in foreign direct investment in 2022 compared to 2021.
So far this year, the Sri Lanka Board of Investment has approved 30 projects worth US$ 604 million. This year’s target is to get investments of US$ 02 billion. Minister Dilum Amunugama further said that the necessary support and concessions will be given to the garment factory owners whose orders have decreased.
Meanwhile, in the past few months, three factories of a major garment company, two factories each of two similar companies and factories of three other companies have also been temporarily closed. Due to the temporary closure of nearly ten factories, nearly five thousand workers who worked there and a large number of people engaged in indirect jobs have lost their sources of income.
According to the report, some who worked in the temporarily closed factories in Koggala, Meepe, Matale, Waturagama, Anuradhapura etc. will be given compensation according to the time they worked, and some other organizations will temporarily close the factory work and pay the workers the basic salary.
