Entrepreneurship

Industry veteran Saifudeen Jafferjee new Chairman of JAAF

Saifudeen Jafferjee delivering the inaugural Chairman’s Address at the 20th Annual General Meeting of the Joint Apparel Association Forum

Urges apparel industry to expand its exports
Points out implications of VAT regulations, especially regarding food and transport services for employees being “burdensome and illogical”
Calls on authorities to expedite process increasing market access

Apparel industry veteran Saifudeen Jafferjee has been elected as Chairman of the Joint Apparel Association Forum (JAAF), the apex body that guides Sri Lanka apparel towards its ultimate goal of being the world’s number one apparel sourcing destination. At the 20th Annual General Meeting held recently, the Executive Committee, including Deputy Chairmen Felix Fernando and Aroon Hirdaramani, were re-elected.

Delivering the inaugural Chairman’s Address, Jafferjee highlighted six key policy areas that the industry is seeking the government support to propel the apparel sector to meet its ultimate objective of becoming the world’s number one apparel sourcing destination. With the macroeconomic programme of the International Monetary Fund (IMF) affecting the business model of the apparel industry, Jafferjee noted it is important for the JAAF to engage with the current leadership on the vital need to return to an export-led business model. He urged the apparel industry to expand its exports, propelling not only the industry but also the country’s economy as a whole. The adherence to cost-reflective electricity prices, as prescribed by the IMF programme, has resulted in a 50 percent increase in Sri Lanka apparel’s operational costs, compared to the competing countries. Jafferjee deemed this path unsustainable and urged the government to instigate change.

The mandatory conversions, initially introduced as a short-term measure, were questioned by Jafferjee, in light of the exchange rate appreciation and excess liquidity in the banking system. He urged the Central Bank to reconsider the policy of compulsory conversions.The implications of the Value Added Tax (VAT) regulations, especially regarding food and transport services for employees, were highlighted by Jafferjee as “burdensome and illogical”, calling for a prompt solution by the state. On the Simplified Value Added Tax, he stated that empirical evidence suggests refund mechanisms do not work and advocated a more permanent arrangement.Expressing hope for success with the Indo-Sri Lanka Free Trade Agreement, Jafferjee emphasised the significance of market access, currently hindered by the lack of an institutional structure.

“Market access is an important aspect the JAAF has been working on. Despite policy intention, lack of an institutional structure has hampered the process.” The newly-elected chairman urged the relevant authorities to expedite the process, as market access is vital for industry growth and in turn, the country’s economic revival. Jafferjee also called on the authorities to expedite the operationalisation of airport scanners to enhance the industry’s speed and capacity.In conclusion, he expressed optimism about the promising indicators of improved orders for the industry in the second half of 2024.

( Source : Daily Mirror)