THE EFFECT OF THE COVID 19 ON OVERALL FIRM PERFORMANCE IN SRI LANKAN APPAREL COMPANIES

Abstract

Covid-19 pandemic originated in China has rapidly spread across the world. The global damage caused by this disaster has not yet been confirmed. In this crisis, the respective authorities and governments put several efforts to control the pandemic outbreak. In the face of this emergency, different rules and regulations were enforced by different countries. The apparel industry significantly contributes to the GDP in Sri Lanka as it accounts for 15% of Sri Lanka’s exports and provides over 300 000 direct employment and 600 000 indirect employment opportunities. Sri Lanka is no exemption when it comes to the effect of COVID-19. The apparel industry has a high demand from overseas buyers, and the raw materials used in its production are primarily imported from other countries. COVID - 19 virus has severely hampered the manufacturing process and the availability of raw materials from suppliers due to foreign transactions’ restrictions. Besides, obtaining the labour required for the production process has been severely restricted due to the government’s precautionary actions. This research’s main objective is to recognise the impact of COVID 19 on Sri Lankan apparel companies and make recommendations for confounding the challenges posed by COVID 19. As a result of the literature review, five key variables were identified to determine the impact of COVID-19, Sri Lankan apparel companies such as finance cost issues, Lockdown limitations, workforce management issues, and research and product development. For this study, data collected from past literature reviews, reports, webpages. The impact of Covid-19 on the Sri Lankan apparel industry’s sustainability is being explored here, as no such research has been conducted in Sri Lanka so far. Finally, the recommendations for overcoming the challenges faced by Sri Lanka apparel companies were suggested.