Business

Reimagining the future of Sri Lanka’s apparel industry

Published

4 years ago

2021/12/1

By Shirendra Lawrence

The emergence of apparel and textiles as a significant contributor to Sri Lanka’s economy began post-Independence in 1948 when a few pioneering industrialists saw opportunities in its domestic market. Following the liberalization of the economy in the late 70’s, the industry ventured into exports, bringing in much needed foreign exchange, and before long, established Sri Lanka’s reputation as a manufacturer of quality products.

During the 90’s, facilitated by the 200 Garment Factories Program, manufacturing that had until then been located in free trade zones was expanded across Sri Lanka. This played a key role in the upliftment of the country’s rural economies.

The last decade has seen a further evolution, focused on end-to-end partnerships and complete customer solutions. However, an in-depth assessment of the sector’s strengths and competencies indicates that its full potential is yet to be realised.

With the pandemic causing significant disruption to Sri Lanka’s economy, our vision of elevating the country to a US$ 8 billion global apparel hub by 2025 is now perhaps more critical than ever. This growth is envisaged through value addition and further evolving from contracted apparel manufacturing for Buying Offices to end-to-end solutions for leading Global Brands and Retailers, spanning innovation to last-mile delivery.

With the pandemic gradually receding, apparel sector stakeholders have renewed collaborative efforts to achieve these goals.

Current status

In pre-pandemic 2019, the value of global apparel exports was estimated at $492 billion. Most would agree that with Sri Lanka’s contribution being just 1% of this, at $5.3 billion, the industry’s aspiration to grow it to $8 billion is not unreasonably ambitious.

Sri Lanka enjoys a reputation as a trusted partner within the supply chains of some of the world’s leading brands and retailers. The country’s apparel industry comprises a few large groups, supported by a strong ecosystem of Small and Medium Enterprises (SMEs). This is a symbiotic system; the larger players have developed meaningful Customer Partnerships, whilst the SMEs have created niches, including supporting the larger Groups to meet their supply chain requirements.

Despite its smaller scale and Sri Lanka’s apparel sector having relatively higher labour costs than some of its regional competitors, along with less preferential export market access, it has still progressed by leveraging other sources of competitive advantages. Sri Lanka ranks high in terms of reliability and product quality, which have elevated the country’s reputation and overall positioning. This is best reflected in the impressive list of global Brands and Retailers served by Sri Lankan manufacturers, including Victoria’s Secret, Marks & Spencer, Boss, NIKE, Calvin Klein, GAP, Levi’s, Ralph Lauren, lululemon, Calzedonia, Intimissimi and Tommy Hilfiger.

This elevated positioning also extends to talent attractiveness, with the country’s apparel sector appealing to the better professional talent, unlike some of our regional counterparts. A case in point is India, where professionals would often see other industries such as automobiles, electronics and IT as more attractive. Furthermore, the Island benefits from its strategic geographical location along major shipping routes as a regional logistics hub.

From an infrastructure standpoint, fabric manufacturers, who require process water, have established their factories within the BOI facilitated Free Trade Zones, which include advanced water treatment processes, whilst those in relatively labour-intensive apparel manufacturing have located themselves in rural areas across the country, providing direct and indirect employment to those communities, accelerating the development of those areas.

Leveraging on trade shifts

Whilst all of this progress has been well invested in, for the country to realise its apparel sector’s true potential, it is essential to fully leverage these strengths while understanding and aligning with the trade shifts that are taking place.

Studies indicate that the impact of increasing political and economic tensions between the Far East and the West will result in the movement of significant amounts of trade from China. Whilst these movements appeared to have commenced pre-pandemic, customers in western markets have delayed this process, not wanting to add additional dimensions of risk on top of pandemic-induced challenges. However, the shift is expected to gather momentum in 2022 and beyond.

Apart from direct business migration, opportunities would include potential FDI inflows from companies in the Far East seeking to augment their existing bases by establishing manufacturing locations in South Asia to mitigate their risk of losing customers. The industry and policymakers are mindful of potential opportunities that could arise as a result. The leadership of Sri Lankan apparel companies, with the support of the industry umbrella organisation, the Joint Apparel Association Forum (JAAF), and its constituent associations, including the Sri Lanka Apparel Exporters Association (SLAEA), are reimagining the sector’s future. These stakeholders are crafting strategic plans to facilitate the process of achieving the sector’s vision.

Maintaining competitive advantage

‘Doing the right thing’ has been the driving philosophy of Sri Lanka’s apparel industry, and this was key in attracting reputed Brands and private label retailers to Sri Lanka during the 80’s and 90’s. Marks & Spencer, in particular, saw Sri Lanka as a credible alternative for the migration of its western manufacturing bases at that time. This catalysed Sri Lankan manufacturers’ alignment with the expectations of the Ethical Trading Initiative (ETI), Worldwide Responsible Accredited Production (WRAP) and other organisations and standards focused on social responsibility and differentiated us from our competitors.

Moving to the present, what were competitive advantages have today become ‘hygiene factors’. Sri Lankan manufacturers have maintained their reputation for ethical manufacturing through environmentally responsible production, strong connections with existing and emerging organisations such as the Sustainable Apparel Coalition (SAC), and investments to reduce their Carbon Footprints. Significant strategic initiatives include the conversion of fossil-fuelled boilers to biomass and introducing other environmentally friendly energy sources such as solar. This also aligns the industry well with the Government’s efforts to increase renewable energy to 70% of Sri Lanka’s total requirement by 2030.

Sri Lankan apparel groups have also grown their businesses through geographic diversification. These efforts seek to minimise customer concerns of single country sourcing, leverage on bilateral and multilateral trade agreements and augment Asian manufacturing locations with a capacity closer to markets.

Improved trade access is vital

Greater preferential market access to existing and identified key export markets would substantially boost Sri Lanka’s apparel exports. However, it is vital to retain existing concessions under the EU and UK Generalized System of Preferences (GSP) Plus schemes while securing tariff reductions to other countries. Considering our success in penetrating key markets such as the USA, where tariffs for apparel exports are as much as, or in some cases even more than 30%, there is a significant opportunity to be had if the industry were provided with tariff waivers or even reductions.

Substantial opportunities also exist in large developing nations. Sri Lanka needs to increase its export quota of 8 million garment items per year to India, one of the fastest-growing regional economies. The Chinese market, too, presents vast potential.

Need for conducive policies

While recent initiatives to modernise trade facilitation, including the digitisation of customs clearance processes and administration of payments through online gateways, are welcomed, much more policy reform is needed. For example, if Sri Lanka is to evolve as an innovative apparel hub, a safe and conducive environment for innovation is required. This is only possible if Intellectual Property and data protection laws are given priority. Similarly, reforming colonial-era labour laws to reflect the very different world that we live in today is essential.

Favourable policies and incentives should be provided for investments related to backward integration and automation. The Eravur Fabric Processing Park is an important development in this regard, and the industry acknowledges the contributions of multiple state agencies in this initiative.

In conclusion, evolving Sri Lanka’s apparel industry will, without doubt, continue to bring benefits to the country – both directly and indirectly – increasing FDI, employment opportunities and export earnings whilst improving innovation and technology inflows.

With all stakeholders working in collaboration, the vision of making Sri Lanka a fully-fledged apparel hub is well within the country’s reach.

(Shirendra Lawrence is an apparel industry veteran and is the Deputy Chairman of the Sri Lanka Apparel Exporters’ Association. He is also an Executive Director of MAS Holdings. Shirendra holds a Mechanical Engineering (Honours) Degree from Imperial College, University of London, and is a Chartered Mechanical Engineer. He counts over 35 years of experience in manufacturing, business development and organisational leadership in the UK and Sri Lanka.)

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Business

Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam

Published

21 hours ago

2026/05/9

Priyan

Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.

The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.

The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.

The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.

During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.

Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.

Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.

Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.

Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.

(PMD)

Business

SL to launch first Dedicated Sustainable Tourism Association in South Asia

Published

24 hours ago

2026/05/9

Thilina Walpola

Tourism personnel at the press briefing

‘Sri Lanka embarks on a journey towards a more sustainable and prosperous tourism industry.’

The Executive Committee of the Sustainable Tourism Association of Sri Lanka (SusTour) announced the above at its final meeting held on May 6, at Connaisance head office, Colombo. The committee finalised all preparations for the official launch in August of the first private sector led, non-governmental Sustainable Tourism Association in South Asia, as most tourism associations in Asia operate as dedicated Eco Tourism entities while this is probably the first in Asia.

This momentous event will be officiated by Prof. Ruwan Ranasinghe, the Deputy Minister of Tourism, who has agreed to inaugurate the Association in conjunction with a media launch.

Prof. Ranasinghe is not only a qualified academic specializing in sustainable tourism but also a passionate advocate for the development of sustainable tourism practices in Sri Lanka. His involvement is pivotal, as he has expressed his commitment to provide unwavering support to the Sustainable Tourism Association of Sri Lanka.

In addition to Prof. Ranasinghe’s support, Buddhika Hewawasam, chairman, SLTDA and Dheera Hettiarchchi, chairman, Sri Lanka Institute of Tourism and Hospitality Management, have also pledged their cooperation in the implementation of sustainable tourism initiatives through their respective state organisations. Their combined expertise and resources are expected to play a crucial role in shaping the future of tourism in Sri Lanka, ensuring that it aligns with sustainable development goals.

This inauguration marks a significant step towards fostering a sustainable tourism framework in Sri Lanka, one that prioritizes environmental preservation, cultural heritage and economic viability. The Sustainable Tourism Association of Sri Lanka is poised to lead the charge in promoting responsible tourism practices, ensuring that the industry flourishes while respecting the rich natural and cultural resources of the island.

Speaking at an exclusive press interview the Tourism Deputy Minister noted; “I am thrilled to see the private sector actively participating in the promotion of sustainable development, particularly within the tourism industry. This partnership is not just beneficial but essential, as it represents a viable mission that requires the joint engagement of both government and private entities. By working together, we can ensure that our tourism practices not only enhance economic growth but also preserve our natural resources and cultural heritage for future generations. It is through this collaborative approach that we can create lasting change and fulfill our commitment to sustainability.”

Adding to this collaborative effort, Australian High Commissioner Matthew Duckworth said Australia would continue its long-term support for sustainable tourism development in Sri Lanka. Australia has contributed more than 50 million Australian dollars over the past decade to sustainable tourism initiatives in Sri Lanka, including to support more sustainable planning, accreditation and skills development for this crucial sector. The High Commissioner confirmed that this support would continue into the future and highlighted Australia’s partnership with the Market Development Facility (MDF), which had recently launched a new initiative using data analytics to help Sri Lankan policy makers better understand how travelers discover and engage with destinations.

“Our vision is to create a platform where all stakeholders including product manufacturers can collaborate and share best practices in sustainable tourism, said Chandra Wickramasinghe, elected founder president of the Association. “We aim to ensure that tourism in Sri Lanka not only provides economic benefits but also contributes positively to the environment and local communities, he added.

The founders of STASL-SusTour believe that sustainable tourism is the ‘Future of World Tourism’ and is crucial for the long-term viability of Sri Lanka’s tourism sector, which is a significant contributor to the nation’s economy. By fostering responsible travel practices, the association seeks to educate stakeholders, including tourists and businesses along with manufacturers about the importance of sustainability.

‘ The association plans to launch various initiatives, including workshops, awareness campaigns and partnerships with local and international organizations focused on sustainable tourism, said Nalin Malwenna, newly elected secretary. Through these efforts, SusTour hopes to position Sri Lanka as a leading destination for eco-conscious travelers looking for authentic and responsible travel experiences.

“The establishment of the Sustainable Tourism Association of Sri Lanka arrives at a pivotal moment, signaling a commitment to a more sustainable future in the nation’s tourism landscape, said elected treasurer Dr. Samantha Pathirathne.

By Claude Gunasekera

Business

Siyapatha Finance unveils 62nd branch in dynamic Horana City

Published

24 hours ago

2026/05/9

Thilina Walpola

Premier finance company Siyapatha Finance PLC recently unveiled its newest branch in Horana, successfully expanding its islandwide branch network to 62 branches. Located in one of the fastest-emerging economic hotspots in the Kalutara District, the Horana branch offers Siyapatha Finance’s wide range of holistic financial services including leasing, fixed deposits, gold financing, business loans,fast draft, factoring, and Smart Pay – the Company’s bill payment facility.

The branch was declared open by Siyapatha Finance PLC Directors- Jayanath Gunawardena and Ms. Sriyani Ranathunga , Chief Executive Officer (CEO) Mathisha Hewavitharana in the presence of Chief Operating Officer (COO) Rajeev De Silva, Ms. Dinuli Gihansi Perera -student of Govinna Maha Vidyalaya , Horana who has been selected to represent Sri Lanka for Asian Boxing Championship 2026 , Senior Management, staff members as well as Police HQI Ranga Perera , Grama Niladhari Mr. Chaminda Kumara, representatives of the government and private banks and insurance companies and well-wishers.

Speaking at the ceremony, Siyapatha Finance PLC CEO Mathisha Hewavitharana remarked: “Horana is a region that has captured massive interest nationally in terms of commercial and social development in recent years. Expanding our branch network to this area gives us a significant opportunity to broaden our reach and serve a larger, diverse ;;customer base’’.