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

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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.



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Low-quality coal shipment affects Lakvijaya coal power plant operations

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Operations at Sri Lanka’s main coal-fired power facility, the Lakvijaya coal power plant, suffered a significant disruption soon after a new shipment of coal was introduced, raising concerns over generation stability and environmental emissions.

Energy analyst Dr. Vidura Ralapanawa said in a social media post that the plant began using coal from “Ship 11” on Wednesday, following confirmation from officials of the Ceylon Electricity Board (CEB).

However, almost immediately after the new batch of coal was fed into the system, the plant’s generation capacity began to decline due to the poor quality of the fuel.

According to Dr. Ralapanawa, the plant’s output dropped by about 82 megawatts overall. Unit 1 recorded a drop of 45 MW, Unit 2 fell by 15 MW, and Unit 3 declined by 22 MW shortly after the coal was introduced.

The situation worsened later in the night when two coal mills in Unit 3 reportedly became clogged around 11 p.m., causing a rapid fall in generation capacity. Unit 3, which normally operates at a higher output level, was said to be running at around 170 MW following the malfunction.

Coal mills are a crucial component in coal-fired power generation. They grind raw coal into a fine powder before it is fed into the boiler for combustion. Each generating unit at the Norochcholai facility is equipped with five coal mills, and any obstruction in these systems can severely affect plant operations.

When mills become clogged, plant operators often have to rely on diesel-fired burner guns to stabilise the flame inside the boiler. While this helps maintain combustion, it significantly increases operating costs because of the high price of diesel.

The heavy use of diesel has another consequence. According to Dr. Ralapanawa’s post, when diesel firing increases, the plant’s Electro-Static Precipitators (ESPs) must be shut down. ESPs are designed to capture and remove particulate matter such as fly ash before emissions are released through the chimney.

With the ESPs switched off, large amounts of fly ash may be released into the atmosphere, potentially affecting surrounding communities.

Dr. Ralapanawa further noted that the coal shipment appears to have low calorific value, low volatile matter, and high ash content, all of which reduce combustion efficiency. In addition, the coal reportedly has a low grindability index, making it harder to pulverise and increasing the likelihood of mill blockages.

He added that while the immediate clogging of the mills may be cleared within a day, the underlying quality issues with the coal could make the problem persistent.

The development comes amid earlier assurances from officials of the Ceylon Electricity Board that the Norochcholai plant could be operated effectively even with lower-quality coal supplies.

The Norochcholai facility, with an installed capacity of 900 MW, is the largest power station in Sri Lanka and a critical component of the national grid. Any disruption to its operations can have wider implications for the country’s electricity supply, potentially forcing the system to rely on more expensive oil-based power generation.

Engineers are currently working to address the clogged mills and stabilise generation, but energy analysts warn that unless the fuel quality improves, similar operational issues could recur.

By Ifham Nizam

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CSE regains some positive terrain but challenges remain

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CSE trading yesterday was positive overall on account of local economic growth prospects but concerns deriving from West Asian tensions lingered.

The market is still recovering from previous days’ uncertainties, market analysts said.

The All Share Price Index went up by 256 points, while the S and P SL20 rose by 63.8 points. Turnover stood at Rs 5.68 billion with nine crossings.

Seven crossings were reported in HNB Finance where 130 million shares crossed to the tune of Rs 1.1 billion; its shares traded at Rs 8.50, LMF four million shares crossed for Rs 348 million; its shares traded at Rs 87, Commercial Bank 661,000 shares crossed for Rs 142 million; its shares traded at Rs 215, Seylan Bank (Non-Voting) 750,000 shares crossed for Rs 49 million; its shares sold at Rs 75.50, ACL Cables 500,000 shares crossed for Rs 49 million; its shares traded at Rs 98, HNB 100,000 shares crossed for Rs 43.2 million; its shares sold at Rs 432 and Access Engineering 500,000 shares crossed for Rs 38.5 million and its shares fetched at Rs 77.

In the retail market companies that mainly contributed to the turnover were; HNB Finance Rs 331 million (34.8 million shares traded), Lanka Credit and Business Finance Rs 184 million (21.6 million shares traded), LOLC Holdings Rs 180 million (320,000 shares traded), Commercial Bank Rs 167 million (774,000 shares traded), Softlogic Capital Rs 138 million (twelve million shares traded), Sampath Bank Rs 124 million (789,000 shares traded) and ACL Cables Rs 123 million (1.26 million shares traded). During the day 330 million share volumes changed hands in 36639 transactions.

It is said that the banking and financial sectors performed well. HNB Finance was active in the financial sector, while Commercial Bank and HNB were active in the banking counters.

Further, National Development Bank has received Colombo Stock Exchange approval in principle to list Rs 16 billion of 11.50, 11.04 and 11.85 percent debentures, it said in a CSE filing.

NDB will issue 120 million Tier 2, listed, rated, unsecured, subordinated, redeemable Basel III compliant GSS+ bonds with a non-viability conversion, at Rs 100 each.

Yesterday the rupee was quoted at Rs 310.70/85 to the US dollar in the spot market, weaker from Rs 310.30/60 the previous day, dealers said, while bond yields were broadly steady.

By Hiran H Senewiratne

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Indian Ocean under fire: Parliament explodes over the sinking of ‘IRIS Dena’

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A new crisis looms with a second Iranian vessel at the doorstep

Sri Lanka’s parliament became a secondary battleground yesterday as the sinking of the Iranian frigate IRIS Dena ignited a fierce debate over national sovereignty, regional maritime priciples, and the government’s perceived ‘strategic paralysis.’

While the Navy’s rescue of 32 sailors was initially painted in shades of heroism, Opposition MPs have now unfurled a narrative of missed warnings and geopolitical betrayal.

In a scathing address, Opposition firebrand Chamara Sampath Dissanayake challenged the circumstances of the vessel’s arrival in Sri Lankan waters. The IRIS Dena had been a guest of the Indian Navy during the MILAN-2026 exercises just days prior. Dissanayake alleged that at the conclusion of the fleet review, the vessel was effectively ‘put out’ of India, leaving the crew with no choice but to steer toward Sri Lanka.

“This was a deliberate attempt by the host to put a guest in harm’s way,” Dissanayake charged, stopping just short of naming India directly while making the implication undeniable. He argued that Sri Lanka had been ‘set up’ to deal with the fallout of a targeted strike that occurred only 11 nautical miles from Galle.

The debate took a darker turn when SJB MP Mujibur Rahman dropped a bombshell regarding the timing of the attack. Rahman alleged that the IRIS Dena had signalled for permission to enter Sri Lankan waters 11 hours before it was struck by U.S. torpedoes.

“Why did the authorities keep silent?” Rahman demanded. He blasted the government for failing to act on humanitarian grounds, suggesting that Colombo’s hesitation provided the necessary window for what U.S. Defense Secretary Pete Hegseth termed a ‘Quiet Death.’ Rahman’s critique painted a picture of a government ensnared in superpower machinations, unable to uphold the principles of the Indian Ocean as a ‘Zone of Peace.’

Responding to the barrage of questions, Cabinet Spokesman Dr. Nalinda Jayatissa confirmed a chilling new development: a second Iranian vessel is currently positioned in the Exclusive Economic Zone (EEZ) off Colombo.

While Jayatissa assured the House that the President and the Security Council are ‘fully aware’ and making ‘necessary interventions’ to protect those on board, the lack of specific details fueled further anxiety. Political analysts suggest that the government’s failure to announce a clear, proactive neutral policy has left it in a state of ‘vacillation,’ unable to decide whether to grant refuge to the second ship or risk another tragedy on its doorstep.

The parliamentary clash was punctuated by the visit of former president Ranil Wickremesinghe to the Iranian Embassy yesterday to offer condolences for the passing of Supreme Leader Ayatollah Ali Khamenei. Wickremesinghe had warned on March 2 – just 48 hours before the sinking – that the current ‘leadership eviction’ methodology in the Middle East could destabilise the Indian Ocean.

As the death toll from the IRIS Dena stands at 87 with 60 still missing, the ‘can of worms’ opened in parliament reveals a nation at a crossroads. The government’s silence during the Dena’s final hours and its current ‘intervention’ with the second vessel will likely define Sri Lanka’s standing in a rapidly fragmenting global order.

As the House adjourned, one question remained hanging in the air: In the face of a superpower conflict, does Sri Lanka have the ‘backbone’ to be truly neutral, or is it merely a spectator to its own maritime destiny?

by Sanath Nanayakkare

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