Title: Pandemic-led trade shocks & supply chain disruption: case studies of the readymade garments (RMG) sector in Sri Lanka and Bangladesh

Authors: Reena Marwah; Sanika Sulochani Ramanayake

Addresses: Jesus and Mary College, University of Delhi, New Delhi, India ' Faculty of Social Sciences, Department of Social Statistics, University of Kelaniya, Dalugama, Sri Lanka

Abstract: As a result of the pandemic, the global economy contracted by a staggering 4.3% in 2020, with the fallout on trade, supply chains and manufacturing sectors being particularly grave with cascading impacts on developing countries GDP, employment and livelihoods. This paper examines the global context of the pandemic on growth rates and trade, with focus on two South Asian developing economies of Bangladesh and Sri Lanka, both being major suppliers of readymade garments (RMG) to western markets. The authors assess the supply chain disruptions in the RMG sector. The issue of raw materials and the decline in demand from western markets is also examined to understand the extent to which job losses and factory closures have been experienced. Several policy prescriptions include measures for surmounting bottlenecks of supplies of raw materials, the importance of government support as well as shorter and diversified supply chains.

Keywords: Covid 19 pandemic; trade; supply chain; readymade garment industry; Sri Lanka; Bangladesh.

DOI: 10.1504/IJISD.2024.135274

International Journal of Innovation and Sustainable Development, 2024 Vol.18 No.1/2, pp.45 - 70

Received: 12 Aug 2021
Accepted: 30 Mar 2022

Published online: 03 Dec 2023 *

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