Business
Sri Lanka’s apparel industry remains consistent in compliance and sustainability: WRAP Chief Avedis Seferian

Given the economic challenges faced by Sri Lanka and the implementation of new EU sustainability laws, companies are realizing the importance of streamlined compliance processes. Certification processes including Worldwide Responsible Accreditation Production (WRAP) offers sustainable solutions, reduces audit fatigue and provides comprehensive audit reports highlighting areas for improvement. The focus is on adopting independent certification, as legislative requirements increasingly mandate such initiatives and Sri Lanka’s apparel sector has made significant strides in embracing responsible manufacturing practices, with a focus on social compliance and sustainability.
As the world’s largest factory-based certification process for clothing, footwear and other sewn products, WRAP certifies facilities for compliance with the 12 WRAP Principles, which address safe, legal and ethical manufacturing processes. Sri Lanka has taken significant strides in embracing responsible manufacturing practices, with an impressive 27 companies and 112 individual factory sites currently holding the Worldwide Responsible Accreditation Production Certification.
In a recent interview, President and CEO of WRAP Avedis Seferian commended the resilience of Sri Lanka’s apparel industry amid the pandemic and unprecedented economic crisis, highlighting that companies under the certification programme have demonstrated unwavering commitment to social compliance and sustainability.
Following are excerpts from the interview:
Q1. With Sri Lanka navigating its way through the economic crisis and new EU sustainability laws gradually coming into effect, why is it important for companies to be certified and why now?
Given the current global economic challenges, the need for a streamlined and efficient due diligence process is paramount. Certification programmes like WRAP offer a more valuable proposition compared to buyers doing their own duplicative audits, by reducing the unnecessary audit fatigue, a term I am only too familiar with, experienced in the industry,. A WRAP certification provides a comprehensive audit report and points to the successful resolution of any non-compliances, making it a powerful proof of commitment to responsible sourcing. Legislative requirements are increasingly mandating the use of independent programmes, reinforcing the significance of organizations like WRAP. The focus is on communicating the importance of adopting independent certification rather than insisting on proprietary audits, as it saves time and resources while enhancing credibility. By embracing independent certification, brands and retailers can meet both their own standards and regulatory mandates, leading to a more efficient and compliant industry.
Q2. What progress has Sri Lanka’s apparel industry made in approaching ESG criteria as per WRAP’s observations?
The industry has done a great job of making responsible manufacturing a key part of its identity. Sri Lankan factories take social compliance and sustainability very seriously and have invested in promoting best practices. You can see this reflected in a number of ways: first, being consistent – many of the facilities currently holding a WRAP certificate in Sri Lanka have been with us a long time. Second, being proactive – while most factories will typically seek WRAP certification once a buyer requests one, many factories in Sri Lanka have gone for WRAP certification without a buyer request, as they believe WRAP is a benchmark for social compliance and sustainability. And third, going above and beyond minimum compliance – we routinely see Sri Lankan facilities instil extra worker-benefit practices, including things like employee welfare measures and women empowerment programmes. It has been very gratifying to see this positive approach to social responsibility become the norm in Sri Lankan factories. We consider it a very significant factor in the success the industry has had over the years and JAAF has done a great job in promoting Sri Lanka as a sourcing destination of choice.
Q3. What do you think are some of the common challenges faced by apparel manufacturers in achieving and maintaining compliance with ESG standards?
In my nearly 20 years of experience in this field, the most significant challenge we face worldwide is the prevailing short-term thinking among buyers and manufacturers. This mentality hinders the true potential for long-term planning and investment in vital areas like social responsibility and sustainability. The key difference lies in viewing something as a mere cost or as a valuable investment. An investment mindset considers the long-term returns associated with cost, while a short-term approach focuses on minimizing expenses.
For lasting improvements in social compliance and sustainability, an investment perspective is crucial, and this requires thinking beyond quarterly or immediate gains. However, fast fashion and public reporting pressures often deter businesses from making such investments due to delayed returns. Despite these challenges, Sri Lanka has garnered an excellent reputation in social compliance and sustainability, thanks to the efforts of JAAF and major manufacturers. The country’s facilities have demonstrated an above-average commitment to long-term thinking and compliance, laying the foundation for a virtuous upward spiral.
The global industry must overcome the prevailing short-term mindset and embrace a longer-term horizon to justify the necessary investments for sustainable and socially responsible facilities. This shift towards long-term thinking remains a universal challenge and is vital for creating a more sustainable and responsible future.
Q4: Moving forward, what are the key trends that apparel companies need to consider for compliance?
It is essential to have a clear sense of direction in their journey towards responsible practices. One of the key aspects to focus on, especially in the social space, is addressing forced labour concerns. Legislation on mandatory human rights due diligence, particularly in Europe, is driving attention to this issue, especially in supply chains involving migrant labour. Manufacturers need to ensure that all workers in their facilities are working voluntarily and this validation process must be independent, transparent and verifiable.
Traceability is another critical element, as laws and business realities increasingly demand visibility throughout the supply chain, even down to raw materials. Although this industry has faced challenges due to its fragmented nature, companies must strive to map out their supply chains to meet the growing demand for transparency from a wide range of stakeholders.
Furthermore, supply chain mapping will become crucial for addressing issues beyond forced labour including carbon emissions measurements. A holistic understanding of the supply chain will be vital in tackling these environmental concerns.
In summary, the immediate focus areas for companies’ compliance efforts should revolve around addressing forced labour concerns, ensuring transparency and traceability in the supply chain and taking proactive steps towards sustainable practices.
Q5. A significant overhaul to the labour laws is anticipated in Sri Lanka – the first since independence. With this labour reform, will WRAP reassess its social accreditation process for factories?
Regarding Sri Lanka’s latest labour law reforms, WRAP follows a dynamic and adaptive approach. For instance, if there are changes in the labour laws that dictate minimum salaries, WRAP’s protocol automatically updates its directives to reflect these new requirements. This flexibility ensures that WRAP remains compliant with the latest regulations without the need for a complete overhaul of the programme.
The concept of social responsibility is universal, but the specific actions required to be responsible vary from one location to another. Different regions have distinct labour laws and regulations, resulting in varying payment standards. WRAP acknowledges this and mandates that all entities under its certification comply with the applicable laws and regulations of their respective locations. Therefore, as labour laws evolve or change in Sri Lanka, WRAP seamlessly adjusts its protocols accordingly, always adhering to the most up-to-date legal requirements.
Q6. How is WRAP working collaboratively with buyers and manufacturers to address ‘audit fatigue’?
We’ve been actively addressing audit fatigue from both ends of the supply chain – assisting manufacturers while engaging in a robust dialogue with buyers. Our efforts have focused on helping buyers understand that insisting on their own audits is not the most effective approach. With WRAP, they can receive independent, efficient and credible audits, saving valuable time and resources.
We also aim to explain the benefits of relying on the WRAP report and certification, streamlining data delivery according to the buyers’ preferences through technology.
Overall, we believe that things are progressing in the right direction, though it’s an ongoing journey. We are committed to fighting the scourge of audit fatigue to enable manufacturers and buyers alike to strive towards more efficient and sustainable practices under a new supply chain due diligence paradigm where brands and retailers utilize independent, credible social compliance certification programs like WRAP instead of forcing production facilities to undergo duplicative audits by insisting on their own proprietary code audits.
Business
Trump tariffs trigger steepest US stocks drop since 2020 as China, EU vow to hit back

Global stocks have sunk, a day after President Donald Trump announced sweeping new tariffs that are forecast to raise prices and weigh on growth in the US and abroad.
Stock markets in the Asia-Pacific region fell for a second day, hot on the heels of the US S&P 500, which had its worst day since Covid crashed the economy in 2020.
Nike, Apple and Target were among big consumer names worst hit, all of them sinking by more than 9%.
At the White House, Trump told reporters the US economy would “boom” thanks to the minimum 10% tariff he plans to slap on imports in the hope of boosting federal revenues and bringing American manufacturing home.
The Republican president plans to hit products from dozens of other countries with far higher levies, including trade partners such as China and the European Union. China, which is facing an aggregate 54% tariff, and the EU, which faces duties of 20%, both vowed retaliation on Thursday.
Tariffs are taxes on goods imported from other countries, and Trump’s plan that he announced on Wednesday would hike such duties to some of the highest levels in more than 100 years.
The World Trade Organization said it was “deeply concerned”, estimating trade volumes could shrink as a result by 1% this year.
Traders expressed concern that the tariffs could stoke inflation and stall growth.
In early trading on Friday, Japan’s benchmark Nikkei 225 index fell by 1.8%, the Kospi in South Korea was around 1% lower and Australia’s ASX 200 dipped by 1.4%.
On Thursday, the S&P 500 – which tracks 500 of the biggest American firms – plunged 4.8%, shedding roughly $2tn in value.
The Dow Jones closed about 4% lower, while the Nasdaq tumbled roughly 6%. The US shares sell-off has been going on since mid-February amid trade war fears.
Earlier, the UK’s FTSE 100 share index dropped 1.5% and other European markets also fell, echoing declines from Japan to Hong Kong.
On Thursday at the White House, Trump doubled down on a high-stakes gambit aimed at reversing decades of US-led liberalisation that shaped the global trade order.
“I think it’s going very well,” he said. “It was an operation like when a patient gets operated on, and it’s a big thing. I said this would exactly be the way it is.”
He added: “The markets are going to boom. The stock is going to boom. The country is going to boom.”
Trump also said he was open to negotiating with trade partners on the tariffs “if somebody said we’re going to give you something that’s so phenomenal”.
On Thursday, Canada’s Prime Minister Mark Carney said that country would retaliate with a 25% levy on vehicles imported from the US.
Trump last month imposed tariffs of 25% on Canada and Mexico, though he did not announce any new duties on Wednesday against the North American trade partners.

Firms now face a choice of swallowing the tariff cost, working with partners to share that burden, or passing it on to consumers – and risking a drop in sales.
That could have a major impact as US consumer spending amounts to about 10% – 15% of the world economy, according to some estimates.
While stocks fell on Thursday, the price of gold, which is seen as a safer asset in times of turbulence, touched a record high of $3,167.57 an ounce at one point on Thursday, before falling back.
The dollar also weakened against many other currencies.
In Europe, the tariffs could drag down growth by nearly a percentage point, with a further hit if the bloc retaliates, according to analysts at Principal Asset Management.
In the US, a recession is likely to materialise without other changes, such as big tax cuts, which Trump has also promised, warned Seema Shah, chief global strategist at the firm.
She said Trump’s goals of boosting manufacturing would be a years-long process “if it happens at all”.
“In the meantime, the steep tariffs on imports are likely to be an immediate drag on the economy, with limited short-term benefit,” she said.
On Thursday, Stellantis, which makes Jeep, Fiat and other brands, said it was temporarily halting production at a factory in Toluca, Mexico and Windsor, Canada.
It said the move, a response to Trump’s 25% tax on car imports, would also lead to temporary layoffs of 900 people at five plants in the US that supply those factories.
On the stock market, Nike, which makes much of its sportswear in Asia, was among the hardest hit on the S&P, with shares down 14%.
Shares in Apple, which relies heavily on China and Taiwan, tumbled 9%.
Other retailers also fell, with Target down roughly 10%.
Motorbike maker Harley-Davidson – which was subject of retaliatory tariffs by the EU during Trump’s first term as president – fell 10%.
In Europe, shares in sportswear firm Adidas fell more than 10%, while stocks in rival Puma tumbled more than 9%.
Among luxury goods firms, jewellery maker Pandora fell more than 10%, and LVMH (Louis Vuitton Moet Hennessy) dropped more than 3% after tariffs were imposed on the European Union and Switzerland.
“You’re seeing retailers get destroyed right now because tariffs extended to countries we did not expect,” said Jay Woods, chief global strategy at Freedom Capital Markets, adding that he expected more turbulence ahead.
[BBC]
Business
Overcoming initial delays, Sampur solar energy project becomes a reality

The long-anticipated Sampur solar energy project is finally set to break ground, marking a significant leap in Sri Lanka’s renewable energy ambitions. After years of delays and negotiations, the Power Purchase Agreement (PPA) for the Surya Danavi 120 MW Solar Farm in Santhosapuram, Trincomalee District, was officially signed on April 1st between the National Thermal Power Corporation of India (NTPC) and the Ceylon Electricity Board (CEB).
This initiative, spearheaded by Trincomalee Power Company Limited (TPCL), a 50:50 joint venture between NTPC and CEB, is expected to be a game-changer in the country’s energy landscape.
The project will be implemented in two phases. Phase 1 involves the installation of a 50 MW solar plant along with the construction of 37 km of 220 kV transmission lines connecting Sampur to Kappalthurai. In Phase 2, an additional 70 MW capacity will be added, complemented by 77 km of transmission lines extending from Kappalthurai to New Habarana.
President Anura Kumara Dissanayake played a crucial role in renegotiating the unit tariff to 5.97 US Cents, which includes a battery storage system to mitigate fluctuations in solar power generation.
According to Ministry of Energy Director General Eng. Pubudu Niroshan Hedigallage, this project is a testament to Sri Lanka’s commitment to renewable energy and energy security.
“For years, Sampur has been at the center of numerous energy debates. This project not only signifies the shift from fossil fuels to cleaner alternatives but also strengthens our grid resilience. The inclusion of battery storage makes this project particularly promising, said Hedigallage.
He further emphasized the importance of strategic partnerships in achieving energy sustainability. “Collaborations like the one between NTPC and CEB show the potential of cross-border energy projects. With India’s vast experience in solar energy, Sri Lanka can benefit immensely in terms of both technology transfer and cost efficiency.”
The Sampur region has long been embroiled in energy-related controversies. Previously earmarked for a coal power plant, the area saw fierce opposition from environmental activists and policy shifts that led to its cancellation. The transition from coal to solar in Sampur is seen as a redemption of sorts, aligning with global climate goals and Sri Lanka’s own commitment to increasing renewable energy in its power mix.
by Ifham Nizam
Business
SriLankan Airlines positioning Sri Lanka as a hub for culturally discerning travellers

SriLankan Airlines is amplifying its commitment to nurturing Sri Lanka’s performing arts scene, leveraging classical Western music and homegrown talent to position the island as a hub for culturally discerning travelers.
The national carrier partnered with the Gustav Mahler Society of Colombo (GMSC) to support the 2025 Spring Concert at Colombo’s Lionel Wendt Theatre on March 29.
The event showcased Sri Lankan classical guitarist Jude Peiris alongside Japanese artists Hiroshi Kogure (violin) and Miyuki Funatsu (soprano), blending local and global artistry. This marks the airline’s sixth collaboration with GMSC, reinforcing its three-year role as the society’s Official Airline Partner.
Dimuthu Tennakoon, Head of Commercial at SriLankan Airlines, emphasised the strategic value of performing arts saying: “World-class cultural productions can transform Sri Lanka into a magnet for travelers seeking immersive experiences. By honing local talent, we unlock immense potential in the growing cultural tourism sector.”
Deepal Perera, Manager of Corporate Communications, highlighted the airline’s dual role: “We’re not just bridging geographies—we’re fostering global exchanges of music and tradition. Sri Lankan artists deserve platforms to shine internationally, and partnerships like this propel them forward.”
GMSC’s Music Director, Srimal Weerasinghe, praised the airline’s impact: “SriLankan Airlines has been instrumental in developing Western classical music here, sponsoring visiting professionals and helping build Sri Lanka’s first professional orchestra. Their support has elevated our global reputation.”
Beyond GMSC, SriLankan Airlines continues to partner with local arts groups and diplomatic missions, cementing its role as a cultural ambassador.
By Sanath Nanayakkare
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