A Sri Lankan exporter to the EU says a strong focus on quality is enough to ward off competition from cheaper export countries such as China and India.

"Our competitors from China and India offer similar products at a much lower price but buyers in the EU still demand our range of products manufactured in Sri Lanka and this demand is growing," Richard Jayatissa, Managing Director of Richard Trading Company told the Island Financial Review.

The company is the sole license holder for Walt Disney and manufactures stationary for the domestic market and also to markets in the EU and South America.

"The European consumer is very conscious about quality and this is an area Sri Lanka exporters can exploit to their benefit. Our experience has shown that if quality is given all the attention it deserved price competition becomes irrelevant," Jayatissa said.

From the heart…

Jayatissa said delivering the highest quality was a matter of the heart and needed to come from within each and every person involved in the manufacturing and delivery process.

"There is no point having quality controls and various mechanisms for monitoring quality. It has to come from within. What is needed is a change in attitude to do well in what ever it is we may do," he said.

Sri Lankan exporters to the EU are worrying over a possible discontinuation of GSP Plus trading facilities fearing competitors from China, Bangladesh and Vietnam would be more price competitive.

"Look at how some of the successful apparel factories operate. They maintain the highest standards in quality and this is why they would continue to receive orders," Jayatissa believes.

Change in attitude…

A change in attitude was a prerequisite highlighted by the Governor of the Central Bank Ajith Niaverd Cabraal last week if Sri Lankan exporters are to face a potential discontinuation of GSP Plus.

Cabraal said the trading facility prevented Sri Lankan exporters to make necessary productivity improvements that would help to stand on their own two feet without having to depend on trade concessions to gain and maintain market access.

Richard Trading Company’s exports earnings may not be as great as the apparel sector, nor does it provide ample employment opportunities, but what Jayatissa has to say throws light on how Sri Lanka should respond to a crisis.

"Demand is growing in the EU despite cheaper products from China and India, so it pays to stay focused on high quality," Jayatissa said.

Recognize the private sector…

However, Jayatissa has one concern.

"The government needs to recognize the role of the private sector in developing the country’s economy and look at developing a conducive environment in which to do business," he said.

While, lauding the government’s recent attempt to bring down lending rates and promote credit creation to the private sector, he said it was difficult for private businessmen to obtain loans to fund new ventures, expand or to fund day-to-day expenses.