Ministry Of Commerce: Further Expand Textile Export To Sri Lanka

With the development of Sri Lanka's garment processing industry, textiles have gradually become the key commodities exported to Sri Lanka. Since 1998, China's textile exports to Sri Lanka have averaged about 120 million US dollars. In 2001, China's textile exports to Sri Lanka amounted to 122 million US dollars, accounting for about 30% of the total trade between the two countries.

I. import and export of textiles in Sri Lanka

The total export volume of Sri Lanka in 2000 was 5.5 billion US dollars, of which clothing (including a small amount of Textiles) was 2.98 billion US dollars, accounting for 54% of the total exports of the whole year; in 2001, the total exports of Sri Lanka were 4.7 billion US dollars, including 2.4 billion US dollars of clothing exports, accounting for 51% of the total exports of the whole year.

Sri Lanka's annual fabric demand is about 800 million meters, most of which are used to produce export clothing. However, Sri Lanka's textile production capacity can only meet less than 10% of the export clothing consumption. In 2000, the total import volume of Sri Lanka was 7.3 billion US dollars, of which the textile imports alone reached 1.47 billion US dollars, accounting for 20% of the total imports; in 2001, the total imports were 5.4 billion US dollars, of which the textile imports were close to 1.5 billion US dollars, accounting for 27% of the total imports.

The biggest fabric importing countries and regions in Sri Lanka are Hong Kong, Taiwan, India and Mainland China. In addition, the total annual consumption of cotton in Sri Lanka is about 55 million kg, of which 25% is produced locally and 75% is imported.

2. The main types of textiles we export to Sri Lanka

In 2000, the main types of textiles exported to Sri Lanka were: cotton woven fabric (42%), synthetic staple fiber and cotton blended woven fabric (14%), fabrics containing 85% or more synthetic staple fiber (4%), flax and ramie woven fabric (3%), man-made staple fiber woven fabric (1%), wool woven fabric, cotton yarn, etc.

3. Problems in China's textile export to Sri Lanka

Although textiles are China's main export commodities to Sri Lanka, they are not as good as Hong Kong and Taiwan in terms of quantity and variety. It is understood that the advantage of China's textile export to Sri Lanka is that the price is relatively low; and the complaints of Sri Lankan businessmen about China's textile export are: delivery is not on time, the quality is unstable, the packaging is not good, the claim is not timely and the language communication is difficult.

Some suggestions on expanding China's textile export

In 2002, the Sri Lanka government proposed to sign a free trade agreement with the United States and the European Union in order to protect the competitiveness of its clothing and textile exports to the United States and Europe after the abolition of the quota in 2005. China's textile enterprises should take advantage of the export channels of HAOSI to the United States and Europe, seize the opportunity to expand exports.

1. Actively expand the export of fabrics

There are more than 140 textile mills in Sri Lanka, but there are less than 10 large-scale enterprises. The annual output of fabric in Sri Lanka is about 180 million meters, which is far from meeting the needs of garment production. About 90% of fabrics required for clothing export need to be imported. I should tap the potential, improve the variety and grade of fabric production, and expand the fabric export.

2. Develop strengths and avoid weaknesses and give full play to advantages

China's textile has the advantage of large quantity and low price. Sri Lanka's exports to the United States and Europe are mainly casual clothes, and China's products are in line with its fabric requirements. Our enterprises should make use of their own advantages to expand export.

3. Invest in local factories

The clothing export of Sri Lanka is characterized by foreign brands. The long-term processing cooperation has made Sri Lanka's garment processing industry gain a certain stable market in European and American countries and regions. For example, the internationally famous daaidas, polo, London fog, Tommy, etc. have been built here for production, and the products are basically exported. At present, most of the textile and clothing factories in Sri Lanka are under started, and some small factories are unable to produce due to lack of funds with orders and quotas in their hands. If our enterprise can see the project correctly, we can inherit its original customer relationship and enter the European and American markets through the acquisition of factory buildings and the existing quotas and orders.

4. Improve the bidding ability

The uniform fabric of Sri Lanka is mostly purchased through bidding. Due to the short time limit of bid opening, our country often loses the opportunity because of many domestic procedures, slow filling in the bid and unqualified sample preparation. Our company can look for some reliable and strong local agents, and improve the efficiency of my bidding work, and may win more bidding opportunities.

5. Building auxiliary materials factory

It is understood that Sri Lanka currently has no garment accessories production plant, and all accessories for export clothing rely on import. Our company can discuss the possibility of building auxiliary materials factory with local enterprises.