Sri Lanka’s apparel industry is seeing a recovery, with factories busy and plans to expand the workforce by 10-15% this year, according to the Sunday Times.
The industry is also preparing for a potential influx of orders from Bangladesh if the situation there worsens.
Export data shows an increase in production and revenue, with order books remaining strong, said Yohan Lawrence, spokesperson for the Joint Apparel Association Forum (JAAF). In June, garment exports grew by 4%, reaching $417.71 million compared to $401.63 million in 2023. July saw a 3.29% rise in revenue, totaling $414.38 million, up from $401.18 million last year.
Larger factories now require an additional 10-15% workforce due to rising exports and an increase in orders.
To address the need for skilled workers, the industry plans to rehire and train staff who had previously left voluntarily. It is expected that it will take about three months to bring them up to speed.
Hemantha Kumara, Secretary General of the Sri Lanka Chamber of Garment Exporters, representing the small and medium enterprise (SME) sector, mentioned that orders have surged by about 120% and will continue through early next year, thanks to stronger consumer demand in key markets like the US, UK, and Europe. He added that the SME sector expects a good Christmas season due to these rising orders. However, there is a significant shortage of both skilled and unskilled workers.
The SME sector, which currently employs around 30,000 people, is actively recruiting, as the workforce has declined by 30% in recent years. Factories in this sector typically employ between 50 and 500 workers, depending on their size.
