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Sri Lanka Retailers appeal for cost-sharing from Business Partners

The Sri Lanka Retailers’ Affiliation (SLRA), the apex physique for organised retail in Sri Lanka, has issued a communique requesting landlords, lessors, and enterprise companions to cut back leases and leases for the Affiliation’s membership.

President of SLRA, Mr. Murali Prakash appealed to landlords and lessors to supply a 50% concession on leases and leases on all types of bodily infrastructure on properties leased and rented by SLRA members for the subsequent one 12 months.

Moreover, the affiliation appeals to all enterprise companions to share different prices the place attainable, to make sure that the sector, as an entire, is sustainable via these troublesome instances to safeguard the whole ecosystem.

The unfavourable foreign exchange state of affairs has plunged many retail companies into a brand new low after battling the COVID-19 pandemic for over two years with diminished operability. 

This has considerably eroded the enterprise sustainability, given that the majority retailers closely depend on imported merchandise and uncooked materials. 

The continuing greenback disaster might proceed to considerably scale back the revenues, impede development and impression all operational ranges to a degree the place sustaining bodily infrastructure can be difficult. Growing the fee base has additional dampened the situation.

On account of this case, there’s a sense of urgency for the retailers to forge partnerships and implement price sharing in all areas to wade via the challenges. SLRA believes that retailers and their enterprise companions might overcome such antagonistic situations solely via a shared imaginative and prescient. In the event that they stand collectively, all prices could be shared and the companies might proceed to function. The choice would pressure retailers to think about diminished enterprise places, which might damage many landlords and enterprise companions and end in zero earnings. 

An identical impression will befall different enterprise companions, ought to retail buyer factors are diminished. Subsequently, it’s within the curiosity of everybody, {that a} shared price technique is established.

SLRA is optimistic that landlords, lessors, and different enterprise companions would share a part of the prices via diminished leases and different cost-sharing choices; thus, striving to create a greater tomorrow. 

It additionally understands the impression this could have on the lessors and landlords and different enterprise companions and suppliers. Nevertheless, the trade wants to remain afloat for all events to profit sooner or later, and subsequently a collective motion is certainly the way in which ahead.

Retailers have endlessly supported the native economic system throughout good and dangerous instances, and that is an exception the place they want assist from all enterprise companions. 

Retail accounts for over one-third of the GDP and over 15% of the employment in Sri Lanka. Vibrant retail is a vital a part of a wholesome and sturdy economic system. Therefore, it’s crucial that every one events come collectively to assist the retailers at this juncture for the nation’s higher good.

The SLRA at present represents 9 sectors within the retail trade, particularly FMCG; Clothes, Trend & Jewelry; Shelter & Housing; Family & Client Durables; Footwear & Equipment; E-Commerce; Mobility; Leisure, Restaurant, and QSR; Healthcare and Wellness.

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