Business
Sri Lankan apparel embracing organic manufacturing: GOTS
The half-a-billion USD global organic textile market1 is set to grow at a compounded annual growth rate of 40% within the next five years and with eco-consumption on the rise, it is evident that apparel companies too, are gearing for the shift in consumer patterns. 2 Sri Lanka, known for its ability to produce high-end niche apparel, is now focused on enhancing its capacity to produce eco-friendly clothing using organic textiles, where compliance remains a key component.
The Joint Apparel Association (JAAF) notes an increase in Sri Lankan companies obtaining the Global Organic Textile Standard (GOTS), indicating an increased awareness within the industry of the importance of adopting international best practices and sustainable manufacturing. South Asian Representative of GOTS Ganesh Kasekar reveals a 21% increase in certified facilities compared to 2022 in Sri Lanka, with 74 factories currently holding certification for the period of 2023/2024. Amongst these Sri Lankan companies, local apparel giants including Hirdaramani International Exports, MAS Intimates and Brandix have also obtained GOTS certification for the sustainable production of children’s wear, ladies’ wear, men’s wear, and baby wear.
GOTS is recognized as the world’s leading processing standard for textiles manufactured using organic fibres. It defines high-level environmental criteria through the entire organic textiles supply chain and requires compliance with social criteria as well. The successful completion of GOTS certification by an approved certifier provides companies with the right to participate in the GOTS programme, including using the standard and the GOTS logo on GOTS-approved goods. With the standard being renewed annually, GOTS 7.0 was launched in March 2023, with full implementation required for all certified entities by March 2024.
GOTS Key Compliance Factors
Built on the three pillars of social responsibility, environmental sustainability and ethical business practices, GOTS covers the production process end to end. “Simply claiming to be sustainable is not enough,” asserts Kasekar. “GOTS has developed standards that cover the entire production process, based on the use of organic fibres, from textile processing and manufacturing up to licensing and labelling. The certification process is rigorous and requires compliance with all criteria, but ultimately leads to an internationally recognized organic certification.”
The certification demonstrates a company’s commitment to providing sustainable, ethical and high-quality products to stakeholders, partners and consumers. Therefore to earn a GOTS certification, textile products must contain a minimum of 70% organic fibers, reflecting a commitment to environmentally friendly materials.
Additionally, stringent criteria govern the use of chemical inputs – ensuring that dyestuffs and auxiliaries meet strict environmental and toxicological standards. Even the choice of accessories is guided by ecological considerations. Notably, a functional waste water treatment plant is mandatory for any wet-processing unit, underscoring the importance of responsible water management.
Kasekar adds: “Because of the substantial impact of the textile industry, proper environmental stewardship is imperative. Emphasis on wastewater management and energy conservation is not new. Among the many inputs used in processing, GOTS only allows those with minimum or no ecological impact.”
Under GOTS, social responsibility is strictly based on the ISO, OECD and ILO conventions and stringently adhered to throughout the supply chain. GOTS 7.0 places additional emphasis on due diligence as an integral component of certification.
Worker welfare has been a core priority of all GOTS-certified Sri Lankan companies, with a commitment to preventing and opposing any form of human rights abuse within the supply chain. These companies uphold strict policies against forced and child labour and measures to combat discrimination, harassment and violence. GOTS places special emphasis on safeguarding the rights of female workers, supporting collective bargaining and ensuring occupational health and safety standards. Moreover, companies are required to address fair compensation and assess any disparities in living wages. The GOTS Human Rights and Social Criteria are firmly rooted in international labour and human rights standards, drawing from the United Nations Guiding Principles on Business and Human Rights, OECD guidelines, International Labour Organization (ILO) Guidelines and other relevant frameworks.
Sustainability at the centre of GOTS
“Sustainability is no longer just a trendy buzzword,” emphasises Kasekar “Certified organic products offer a practical solution for retailers and consumers to make legitimate and verifiable sustainability claims for textile products. The demand for organic products is strong in the US and EU markets, driven by environmentally-conscious Gen Next consumers.”
Stating that the textile industry holds promise in addressing economic challenges in Sri Lanka, he pointed out that it is crucial for local industries to align with sustainability standards, encompassing environmental, social and governance criteria.
It is evident that compliance certifications play a pivotal role in seamlessly integrating with global supply chains and international trade by adhering to globally accepted trading standards, and ideally emphasized at a time when Sri Lanka seeks export expansion, investor attraction and improved foreign exchange inflow.
Business
India-Sri Lanka Foundation’s 41st meeting signals a new era of integration
By Sanath Nanayakkare
On the surface, the 41st Board Meeting of the India-Sri Lanka Foundation (ISLF) in New Delhi on August 28, 2026, was structured as a routine diplomatic engagement. Co-chaired by Indian High Commissioner Santosh Jha and Sri Lankan High Commissioner Mahishini Colonne, the session formally approved a standard slate of cultural and educational projects.
However, looking closer at the broader macroeconomic and geopolitical landscape, the meeting underscored a much deeper structural alignment between the two nations. Against a backdrop of ongoing economic recovery, bilateral discussions increasingly touch upon critical areas of regional integration, investment, and infrastructure.
Among the key areas attracting attention are post-civil war reconciliation efforts and administrative milestones in the Northern Province.
Discussions in diplomatic circles continue to focus on the progressive release of state-held lands back to civilian inhabitants, alongside the anticipated finalization of provincial council elections to support local governance frameworks.
In the economic sphere, commercial integration remains a central theme as Sri Lanka stabilizes its foreign exchange reserves.
Recent financial dialogues in Colombo were seen exploring mechanisms such as transacting in Indian Rupees (INR), aligning with wider regional efforts to facilitate bilateral trade settlements and mitigate foreign currency pressures. Financial institutions, including the State Bank of India, continue to support these bilateral trade facilitation mechanisms.
Cooperation in the energy sector is also progressing through key joint ventures aimed at harnessing renewable resources. Proposals such as the 200MW solar power project in Sampur, developed via a partnership between NTPC and the Ceylon Electricity Board, highlight ongoing efforts to diversify national power generation. Discussions concerning cross-border grid interconnections further reflect strategies to enhance regional energy security and optimize renewable capacity.
At the same time, ongoing reviews of project tariffs – such as those involving renewable initiatives by firms like Adani Green Energy – demonstrate the government’s focus on balancing capital investments with domestic economic interests.
As the ISLF marks decades of supporting bilateral cultural exchanges through hundreds of initiatives, the overarching partnership between New Delhi and Colombo continues to evolve. Navigating these complex frameworks of trade, energy, and development remains essential as Sri Lanka charts its economic future within the South Asian region.
Business
Sysco LABS named one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces for 2026
Sysco LABS, the Global Innovation Center of Sysco, has been named one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces at the Women-Friendly Workplace Awards 2026, marking its highest recognition at the awards to date.
The recognition represents an important milestone in Sysco LABS’ ongoing journey to build a workplace where women are supported not only to enter and participate in the technology industry, but to develop, progress and build meaningful long-term careers.
Held recently, the 2026 awards organized by Satynmag continued a six-year journey of recognizing and encouraging organizations to move beyond intention towards meaningful and measurable progress for women at work. This year’s awards placed particular emphasis on a defining question for women-friendly workplaces: beyond representation, how far are women able to go?
This win also reflects a progression in the company’s recognition journey at the Women Friendly Workplaces Awards. Following an “Honorable Mention” in the 2023 edition of the ceremony while winning a special award for “Best Women in STEM Project” in 2025, 2026 marks the first time Sysco LABS has been recognized as one of Sri Lanka’s Most Outstanding Women-Friendly Workplaces.
Business
CCPI-based headline inflation accelerates in August 2026
The Colombo Consumer Price Index (CCPI, 2021=100) based headline inflation (year-on-year, Y-o-Y) increased to 8.0% in August 2026 from 7.3% in July 2026, primarily due to the statistical base effect in food inflation. Meanwhile, food inflation (Y-o-Y) increased to 8.5% in August 2026 from 6.3% in July 2026, contributing mainly to the increase in headline inflation, while non-food inflation (Y-o-Y) decelerated to 7.7% in August 2026 from 7.8% in July 2026.
On a month-on-month basis, the CCPI increased by 0.28% in August 2026. This increase was mainly driven by the food category, which contributed 0.20 percentage point, largely owing to the increase in prices of Milk Powder, while the non-food category contributed a marginal 0.07 percentage point.
Meanwhile, core inflation (Y-o-Y) accelerated to 5.1% in August 2026 from 4.4% in July 2026.
According to the inflation projections made at the monetary policy round in July 2026, headline inflation is expected to remain above the target of 5% in the near term, before easing and stabilising around the target over the medium term, supported by appropriate policy measures. These projections are conditional, among other assumptions, on the expectation that the effects of the tensions in the Middle East and their spillovers will be temporary and gradually dissipate.
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