By: Staff Writer
February 05, Colombo (LNW): Sri Lanka’s apparel sector is positioning itself for a decisive pivot in 2026, emphasizing deeper integration with India as a strategic lifeline amid intensifying regional competition. In a speech at the Sri Lanka Apparel Exporters Association (SLAEA) 2025 AGM, Chairperson Rajitha Jayasuriya outlined the industry’s priorities for the year ahead, focusing on securing quota-free access to India and building stronger regional value chains.
Jayasuriya argued that Sri Lanka cannot afford to rely solely on traditional markets, warning that Cambodia, Vietnam and Bangladesh are rapidly outpacing the island’s garment export performance. Cambodia has become the fastest-growing supplier to major Western markets, Vietnam is accelerating automation and smart factory investments, and Bangladesh continues to dominate large-scale basic apparel production. Sri Lanka’s response, she said, must be swift and strategic.
A stronger India–Sri Lanka apparel corridor is viewed as more than an economic opportunity—it is a geopolitical necessity. India’s emergence as a major global sourcing hub and retail powerhouse offers Sri Lankan exporters a chance to diversify and deepen their market reach. The industry expects diplomatic support from Indian officials and calls on the Indian High Commissioner and senior diplomats to actively promote trade collaboration.
Yet, the pathway is not smooth. Jayasuriya highlighted that Sri Lanka’s reform agenda remains incomplete, even as the government’s 2026 Budget introduced export-friendly measures and digital tax reforms. She warned that without urgent policy action, the industry risks falling behind competitors that are rapidly modernizing and expanding free trade agreements.
Technology and innovation have become central to Sri Lanka’s survival strategy. The sector plans to accelerate automation, adopt artificial intelligence, and transition toward fully data-driven operations. At the same time, market diversification into Asia, the Middle East and Africa is being prioritized to reduce dependency on traditional markets.
The chairperson also stressed workforce development and sustainability as critical pillars. Investment in skills, gender equity, worker wellbeing, and compliance with global ESG standards are seen as essential for maintaining Sri Lanka’s reputation for ethical production. Yet, these goals require strong government support in infrastructure and policy stability.
Key demands include full implementation of the National Single Window and Electronic Travel Authorisation systems, establishing a dedicated trade office for major FTAs, and operationalizing the Eravur Fabric Park. Without these reforms, the apparel industry’s future could be limited to shrinking market share and increasing vulnerability.
