Message from the Chairman of the Joint Apparel Association Forum (JAAF)



Small and Medium Enterprises (SMEs) play an important role in any economy through the generation of employment, contributing to the growth of GDP, embarking on innovations and stimulating of other economic activities. SMEs represent the backbone of our country's industrial base. The development of this sector is important for any country irrespective of its level of development. So there is a vast opportunity for Sri Lanka to harness the prospect of developing this vital sector.

Sri Lanka has traditionally been an agro-based economy. Its recorded history, going back more than 2000 years bears ample testimony to this . Though Sri Lanka's traditional exports were tea, rubber, coconuts, gems and jewellery, all of these have been superseded now by the Apparel Industry.The apparel industry in Sri Lanka plays a pivotal role as one of the main
economic revenue gainers in Sri Lanka. Today, the industry is a significant contributor to Sri Lanka's economy. In 2004, apparel products alone (excluding textiles) contributed to 46% of the country's export revenue and accounted for nearly 5.55% of the country's GDP, whilst generating employment to nearly 340.000 persons.

Three Fourths (3/4) of total exports from Sri Lanka are done by large-scale manufacturers. These organizations are in a position to restructure and sustain themselves in a competitive market according to surveys. But the survival of the other small and medium scale industries is at stake, making the situation critical because these small and medium scale manufacturers
contribute significantly to employment in the apparel industry.

The project launched by the European Chamber of Commerce, in conjunction with the Joint Apparel Association Forum, will provide an opportunity for SMEs engaged in apparel manufacturing to increase their local management skills, that will lead to productivity improvement and cost reduction, prior to the companies seeking investment partners with Europe and export opportunities within Europe. These companies will be prepared more
effectively through improved productivity and competitiveness to conduct durable business relationships. This project will give the SME apparel manufacturers new operational horizons and an international perspective, which is ever more necessary if they are to flourish in the years to come.
 
The Joint Apparel Association Forum wishes every success to all companies participating in this programme.

Ashroff Omar
Chairman
Joint Apparel Association Forum