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Sri Lankan economic crisis affects India’s cloth exports

Oct 01, 2021
Sri Lankan economic crisis affects India’s cloth exports

Sri Lanka

Sri Lanka is India’s second largest export vacation spot for clothes merchandise and is the second-largest marketplace after Bangladesh. The Sri Lankan rupee has weakened by greater than 10% in opposition to the US dollar, giving rise to considerations amongst Indian textile and cloth exporters that funds might get delayed. This comes after a slowdown in exports to Sri Lanka.

Siddhartha Rajagopal, government director, The Cotton Textiles Export Promotion Council (Texprocil), said that, exports of cotton cloth to Sri Lanka have been witnessing an upward pattern on account of pent-up demand. He also said that, it began slowing down from August, after which there was the financial emergency which disrupted commerce.

Export of cotton cloth from India within the first seven months of 2021, was $179.29 million, up 38.47% from the year-ago interval, primarily on account of pent-up demand. Different merchandise which might be exported to Sri Lanka are auto spare components, footwear, laptop peripherals, and iron and metal.

Sri Lanka’s financial woes are partly because of the outbreak of Covid-19, which affected tourism, one of many main sources of international foreign money earnings and its mounting international debt.

Praveen Khandelwal, normal secretary of the Confederation of All India Merchants (CAIT), mentioned that merchants are going through cost issues because of the disaster in Sri Lanka.

Source: The Economic Times

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