Big time apparel exporters benefit from the present situation in the country due to the depreciation of the rupee.
But on the other hand the increase of the manufacturing cost is unbearable for small-time manufacturers and as a simple illustration, three month’s back the diesel price was at Rs. 92 per litre and today it is Rs. 400 per litre with no corresponding price increase from buyers.
Some would argue that the depreciation of the rupee would offset this. Yes, to a certain extent it would.
However, members of the Sri Lanka Apparel Cluster Association (SLACA) who manufacture 90% of spillover orders and get paid in local currency are in great difficulty.
This message is more for the big apparel manufacturing units in Sri Lanka. They are enjoying the benefits of the escalation of the dollar by themselves. But there will come a day when they will be in the same boat as the small scale manufacturing plants.
Therefore, I appeal to all the big brothers to provide the small plants with some sort of assistance by paying a better price to help them survive.
The writer is the president of the SLACA.