Since January 1, 2005, though quotas have been removed negating all previous export advantages, Sri Lankan economy has shown strong resilience even with a drop in textiles and apparel exports.
This was revealed by International Monetary Fund (IMF) Executive Board that concluded 2006 Article IV Consultation with Sri Lanka recently and released IMF Country Report No. 06/446, today.
In fact, the IMF country report notes that first eight months, this year saw a 5 percent rise in the value of textiles and garments exports.
Rising oil prices and export drop apart, Sri Lankan economy is growing at almost 8 percent while inflationary pressures continue to build, the report announced.
Undeterred by competition, apparel and textiles exporters have found and explored niche markets expanding their exports horizons, notes the IMF report.
It says 'with the increasing backward linkages in the industry, and concessions from the GSP+ scheme for the European Union, domestic industrialists have expressed confidence in their ability to maintain and increase exports.'
Meanwhile, the IMF report projected a high consumer price index at 12 percent for 2006 for the country.
For Sri Lanka, garments and textiles exports comprise 45 percent of the total goods exported and its export volume growth appears to be moderating, including in the garments sector.
marketing@alchempro.com
