Sri Lanka: One year after mass uprising, economic turmoil
Food and healthcare costs continue to surge, and poverty rate has doubled, but at least tourists are back.
COLOMBO – For months, Mr Channa took the long way to the grocery store in the Maharagama suburb of Colombo, to steer clear of a place that triggers bad memories.
In May, he had to close down his factory that produced underwear for global brands, with 40 people in his employment.
“This factory was set up by my father, so I tried hard not to suspend operations. But orders have shrunk under the global downturn, and I couldn’t afford to keep it running with my growing household expenses as well,” said Mr Channa, 51, who gave only his first name.
The garment industry is Sri Lanka’s biggest export earner, and directly employs about 350,000 people.
The sector was forged under fire, built during the 30-year-long civil war. It saw a marginal fall in earnings and no factory closures throughout the Covid-19 pandemic, the 2019 Easter bombings, or the worst of the economic crisis.
Unemployment rises in Sri Lanka after the crisis in May 2022
But the global economic downturn that coincided with Sri Lanka’s recovery period has seen apparel exports shrink and manufacturers face growing pressure to raise wages because of the higher cost of living.