Mr. Bandula Fernando, Chairman of the Sri Lanka Garment Export Board, said that the small and medium scale garment industry owners in Sri Lanka have fallen into trouble due to the cancellation of the VAT refund by the government.
Mr. Bandula Fernando also said that there was a great incentive in the garment sector due to the refund of VAT to exporters or the simplified VAT system, but due to the removal of that system, many problems have arisen for small and medium-sized garment companies in managing the flow.
He also said that since the export of garments in this country is low due to the economic crisis in Europe, steps should be taken to reduce the import by about 80%.
He also said that 60% of the country’s clothing requirements are imported and 40% are procured locally.
Mr. Bandula Fernando also said that by increasing the use of garments produced in Sri Lanka, the small and medium-scale garment industries will be protected, and the job security of the employees will be confirmed.
