Page 61 - November 2020

South Asian Economy

industry was able to secure not being able to come to Srilanka
orders for PPE. Although the work. Also, large companies The stakeholders of the
initiated partial shutdowns of
industry could not completely
FNF utilise the opportunity due to factories to assimilate to the industry are in contact with
the government to ratify
compliance issues, it was able
situation. The factories also
numerous Free Trade
to generate revenues
used a rooster system for the
WEBINAR SHEDS amounting to half a billion workers to ensure workers do Agreements FTA(s). Srilanka
will be eligible for GSP+
dollars.
not lose their jobs. They also
status for 3-4 more years as
Previously, Srilankan RMG
used other cost-cutting
the economic status of the
sector was growing steadily at
initiatives like reducing
LIGHTS ON HOW the rate of 5-7% for the past overtime. Government country has declined in recent
times (upper-middle-income
incentives like temporary
five years. Compared to last
country to lower middle
working capital loans were
year, the export volume for
income country). The
January to August declined by
invaluable. Unlike
TO RESTART 25% due to the pandemic. Bangladesh, the cancellations government also needs to
evaluate the enormous trade
Srilanka's RMG exports are
were not as drastic, there
deficits that exist with
heavily dependent on two key
were only three cancellations,
countries like India and China
ASIAN markets, the EU and USA. and their amount was not as and look to reduce the gap.
Although the markets have
significant.
Most importantly, it has to
A.F.M Nurur Rahman shared
shown signs of coming back
assess and remove import
a similar experience; the
restrictions on products that
ECONOMIES Bangladeshi RMG sector has are necessary for the
also taken a massive hit from
economic growth of the
the pandemic as the
country.
cancellations have been far
more damaging to the
The Textile and industry. Analogous to Bangladesh
Srilanka, Bangladesh's RMG
Readymade Garment exports are heavily The government can aid the
sector by facilitating faster
dependent on the US, EU and
Industry other G20 countries and the port facilities and other
administrative barriers to
economic forecast for the trade. It has to address the
The growth of the textile and countries are not very increasing port congestion
encouraging. The disruption
readymade garments industry is started in December 2019 has and implement directives to
essential to the economic prosperity been prevalent throughout manage the congestion. The
of the region. Its recovery must be 2020. stakeholders of the industry
have to understand the
enforced with proper evaluation and According to Bangladesh shifting dynamics of the
understanding. Garment Manufacturers and sector in the global markets
populated regions. to normalcy, stakeholders in Exporters Association and adapt accordingly. The
(BGMEA), the industry has
the sector are sceptical about
By Asif Tarafdar In a discussion titled a second wave in the winter. lost close to 5 billion dollars government also took
"RESTART ASIAN Except for the ones worth of orders. After the initiatives to increase the
ECONOMIES: Ideas and manufacturing PPE(s), most initial shutdown, factories capacity of the shipping
Actions for The Textile and companies that will enable the
The COVID-19 pandemic has Readymade Garment reviving the sector. Moderated factories in Srilanka remained across Bangladesh started factories to respond faster to
shaken the global economic Industry," hosted by the by Dr Nazmul Hossain, closed at the initial stages of operating in May due to demands. Government has
foundations. The economic Friedrich Naumann Country Representative, FNF, the pandemic. Despite the social distancing regulations. also to ensure uninterrupted
fallout has multidimensional Foundation (FNF), the Bangladesh, the panellists shutdown (March-April), the As a cost-cutting measure, energy supply to the factories.
implications that will persist panellists discussed the were A.F.M Nurur Rahman factories had to pay full RMG factories in Bangladesh Energy disruption can
for years to come. As the current state of the hotel (Bangladesh) General salaries of the workers as streamlined their workforce seriously impede growth.
lockdown regulations are industry. They explained the Manager, Ha-meem Group, directed by the government. at the top positions by Concurrently, the government
being across the world, we magnitude of the crisis and its and Felix Fernando (Srilanka) As the situation improved, the reducing highly paid can work with the private
evaluate how soon the implications on the local Group Director, Omera Line factories were allowed to executives and implementing sector to set up medical
regional (South Asian) economy. The interaction Ltd. re-open gradually with limited reduced working hours. facilities for workers at the
economy can get back on its facilitated the exchange of According to Felix Fernando, capacity, ultimately restoring The panellists discussed proximity of their work or
feet. Quick economic recovery ideas, challenges faced by the there are roughly 350 to full power by June. non-financial short term residence. The focus has to
is essential to saving the lives entrepreneurs and their export-oriented ready-made Concurrently, the government government support for the remain firm on the mental and
and livelihoods of the people solutions, and the garments in Srilanka. At the allowed RMG factories to pay industry in both countries to physical well being of the
in one of the world's densely government's role towards height of the pandemic, the 50% of salaries for the workers ensure robust growth. workers.
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