Page 62 - November 2020

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
industry could not completely initiated partial shutdowns of
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
to generate revenues used a rooster system for the numerous Free Trade
Agreements FTA(s). Srilanka
amounting to half a billion workers to ensure workers do
dollars. not lose their jobs. They also will be eligible for GSP+
status for 3-4 more years as
Previously, Srilankan RMG used other cost-cutting
sector was growing steadily at initiatives like reducing the economic status of the
country has declined in recent
the rate of 5-7% for the past overtime. Government
five years. Compared to last incentives like temporary times (upper-middle-income
country to lower middle
year, the export volume for working capital loans were
January to August declined by invaluable. Unlike income country). The
government also needs to
25% due to the pandemic. Bangladesh, the cancellations
Srilanka's RMG exports are were not as drastic, there evaluate the enormous trade
deficits that exist with
heavily dependent on two key were only three cancellations,
markets, the EU and USA. and their amount was not as countries like India and China
and look to reduce the gap.
Although the markets have significant.
shown signs of coming back A.F.M Nurur Rahman shared Most importantly, it has to
assess and remove import
a similar experience; the
Bangladeshi RMG sector has restrictions on products that
are necessary for the
also taken a massive hit from
The factories also the pandemic as the economic growth of the
country.
cancellations have been far
used a rooster more damaging to the
industry. Analogous to
system for the Srilanka, Bangladesh's RMG Bangladesh
The government can aid the
exports are heavily
workers to ensure dependent on the US, EU and sector by facilitating faster
port facilities and other
workers do not other G20 countries and the administrative barriers to
economic forecast for the
trade. It has to address the
lose their jobs. countries are not very increasing port congestion
encouraging. The disruption
started in December 2019 has and implement directives to
been prevalent throughout manage the congestion. The
2020. stakeholders of the industry
According to Bangladesh have to understand the
Garment Manufacturers and shifting dynamics of the
to normalcy, stakeholders in Exporters Association sector in the global markets
populated regions. the sector are sceptical about (BGMEA), the industry has and adapt accordingly. The
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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