The main opposition, Samagi Jana Balawegaya (SJB) has expressed its willingness to support legal amendments that will address the dire issues faced by Small and medium-sized enterprises (SMEs) in Sri Lanka.
Taking to Twitter, SJB MP Dr. Harsha de Silva stated that it was important to understand the reasons for the drop in Sri Lanka’s export revenue, which is -16% YoY in April 2023, particularly apparels which reported a -23% drop.
MP de Silva pointed out that open capacity is across regions with inventory buildup due to lower demand in the West for multiple reasons, while there was also intense price competition.
Warning that this situation will continue perhaps until mid or late 2024, the MP said, “Those with deep pockets can hold on with difficulty, but what of the SMEs? Need urgent attention.”
Highlighting the growing Indian market and its clear Free Trade Agreement limit, the MP advised the authorities to invite those leaving China with solid European customers and to take measures to protect the European Union’s Generalised Scheme of Preferences Plus (GSP+).
He further called on the authorities to resolve the dire issues facing SMEs by restructuring their facilities.
“Misery caused by the same government now with former President Gotabaya Rajapaksa then. Samagi Jana Balawegaya will support urgent legal amendments. Need Chapter 18 type law later,” the MP said.
SJB MP Harsha de Silva also added that, however, the long-term need is to integrate stronger with global markets beyond apparel. (NewsWire)
