The Joint Apparel Association Forum (JAAF) said apparel exports have grown by 8.8 percent during the first quarter of 2009 compared to the same period last year.

"The apparel industry of Sri Lanka has been able to maintain its steadiness and mitigate the impact of recession on the economy by its satisfactory performance in the first quarter of 2009. While the Apparel Industry expresses its satisfaction over its performance it acknowledges that it was due to timely action taken by the Government with necessary macro policy adjustment measures, providing relief by implementing proposals announced in the Budget of 2009 and putting in place Export Development Rewards Scheme that enabled the Apparel Industry not only to be competitive but also record a growth in exports in the first quarter of 2009," a statement issued by JAAF said.

"The total exports of apparel in the first quarter of 2009 was US $ 801.3 million compared with US $ 736.2 million in the previous year thus recording an overall growth of 8.8%. Although exports to the US recorded 4% decline in January – March 2009 with exports recording US $ 346.3 million compared to US $ 360.9 million in the previous corresponding period, exports to the EU increased to US $ 404.4 million in the first quarter 2009 compared to US $ 336.0 in the previous corresponding period, recording a high positive growth of 20.3%," it said.

According to JAAF, the performance of the apparel sector in the first quarter of this year should be viewed in the background of all major exports markets of Sri Lanka are in recession and with the export sector facing many challenges both Internationally and Domestically and many other exports sectors of the economy not been able to maintain their previous levels exports.

"The many contributory factors which enable apparel industry to perform satisfactory include removal of surcharge on electricity, reduction in cost of furnace oil and implementing other measures announced in the Budget of 2009. The timely announcement of Export Development Rewards Scheme by the Government and putting in place an implementation structure enabled Apparel Industry to maintain its competitiveness and prevent their major buyers shifting to our competitor countries. The recent adjustment to exchange rates for which the apparel industry has been making representation has also had its desired positive impact," JAAF said.

"The membership of JAAF being the major contributor to foreign exchange earnings of the country accounting for 43% of total export earnings, wishes to express its deep appreciation to President Mahinda Rajapaksa for his far-sightedness in taking necessary macro economic measures and implementing Export Development Rewards Scheme for the benefit of the Industry at a time Sri Lanka is faced with challenges of fighting ruthless terrorism of the LTTE. The JAAF also wishes to convey its gratitude Basil Rajapaksa, M.P and Special Advisor to the President, for the initiatives taken by him to address and resolve many issues affecting the Industry, which immensely contributed to performance of the Apparel Industry. The contribution made by Prof. G.L. Peiris, Minister of Export Development and International Trade for putting in place administrative structure for implementation of EDRS an initiative taken to find new exports markets, as well as support and assistance provided by Kumara Welgama, Minister of Industrial Development for implementing many programmes are acknowledged with appreciation. The JAAF also take this opportunity to thank all other Government ministries, institutions for their contribution which enabled our members to perform.