Sri Lankan economic crisis affects India’s cloth exports
South India’s textile and cloth exporters are fearful that the financial disaster in Sri Lanka could result in a delay in funds from consumers within the island nation.
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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