Sri Lanka garment workers face job losses as factories lose to Bangladesh amid slowdown
- Global economic shocks that decimated apparel demand prompted factories to lay off workers in an industry that accounted for half of Sri Lanka’s export revenue in 2022
- Analysts also believe that some of Sri Lanka’s market dominance in apparel manufacturing is moving to Bangladesh, partly due to trade agreements
Sri Lanka’s garment sector made up almost half its export revenue last year, after remaining resilient even through the pandemic and the country’s debilitating economic crisis.
But shocks in the international market have led to a plunge in demand, prompting factories to lay off hundreds of employees.
For one such worker, who wished to be known as Sunil, the loss of income came as a blow but he felt his youth was an advantage in the job hunt. For senior workers, especially older women, the likelihood of being employed again was low, he said.
Although the large manufacturer he worked at gave each worker a redundancy payout ranging from 100,000 to 150,000 Sri Lankan rupees (US$310-470), Sunil said it was not enough for any family to survive on. “Compensation cannot [match] the loss of permanent income,” he said.
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Loss of market share?
