Sri Lanka’s apparel industry, the country’s single largest export earner, continued to post healthy growth in July 2025 despite looming uncertainties over United States tariffs and the European Union’s review of the GSP+ trade concession.

According to the Joint Apparel Association Forum (JAAF), export earnings rose 9.84% year-on-year in July, reaching $455.16 million compared with $414.38 million in July 2024. The strongest expansion came from the European Union (excluding the UK), where shipments jumped 26.69%, underscoring the importance of GSP+ access in sustaining competitiveness.

 Exports to “other” destinations grew 24.24%, while the UK market posted only a marginal increase of 0.72%. The United States — traditionally Sri Lanka’s largest buyer — recorded a 2.7% decline, raising concerns over potential fallout from trade policies and buyer shifts.

For the first seven months of 2025, cumulative apparel exports totaled $2.92 billion, up 9.09% from $2.67 billion during the same period in 2024. EU shipments led with an 18.2% increase, followed by growth of 11.02% to “Other” markets, 5.65% to the UK, and 2.91% to the US.

A JAAF spokesperson said the steady performance reflected the sector’s resilience and ability to adapt to evolving buyer requirements on speed, quality, sustainability, and compliance. “The growth in July and over the first seven months highlights Sri Lanka’s firm position in global markets, particularly the EU. However, sustaining this momentum will require expanded trade opportunities, value addition, and supportive policy frameworks,” the spokesperson added.

Current Challenges and Risks

Despite the encouraging numbers, analysts caution that external headwinds could dampen the outlook. The United States, which accounts for nearly 40% of Sri Lanka’s apparel exports, has already imposed additional tariffs on several product categories under its ongoing trade policy review. Although Sri Lanka has so far avoided the worst of these measures, industry experts warn that escalating protectionism could erode competitiveness against low-cost producers such as Bangladesh and Vietnam.

Meanwhile, Sri Lanka’s access to the EU’s GSP+ preferential trade scheme, which grants duty-free access to most apparel categories, remains under review due to governance and human rights concerns. Any suspension of GSP+ would directly impact earnings, particularly given that the EU has emerged as the strongest growth market in 2025.

Industry Outlook

Looking ahead, JAAF and exporters are pushing for a diversification strategy, targeting emerging markets in Asia and the Middle East to reduce dependency on the US and EU. Greater emphasis is also being placed on high-value segments, including sustainable fashion, digital design integration, and nearshoring strategies to meet buyers’ fast-changing demands.

The apparel sector contributes nearly 6% of Sri Lanka’s GDP and employs over 350,000 workers directly. Industry leaders stress that a clear policy direction, consistent trade diplomacy, and investment in innovation and value addition will be critical to safeguarding the sector’s future growth.

Sri Lanka’s cultural heritage will gain new international attention this September, as the United States joins hands with local authorities to highlight one of the island’s most remarkable archaeological discoveries  the Godawaya Ancient Shipwreck.

The U.S. Embassy in Colombo announced that, in collaboration with the Central Cultural Fund’s Maritime Archaeology Unit, it will host a three-day exhibition and symposium from September 3–5 at the BMICH Cinema Lounge, showcasing ongoing work to document and preserve artifacts from the Godawaya site.

The exhibition, opening to the public at 11:00 a.m. on September 3, and from 10:00 a.m. to 5:00 p.m. on September 4–5, will not only present historical treasures but also emphasize the broader message of protecting cultural identity in the Indo-Pacific. U.S. officials linked the initiative to the region’s importance in ensuring peace, stability, and sovereign rights.

A Shipwreck Frozen in Time

Discovered off the southern fishing village of Godawaya, the shipwreck is considered the oldest known wooden vessel in the Asia-Pacific, dating back more than 2,100 years to the 1st or 2nd century BCE. Archaeologists describe it as a “time capsule” that sheds light on early Indian Ocean trade, shipbuilding techniques, and Sri Lanka’s central role as a hub of maritime commerce.

Recovered artifacts include clay pottery, grinding stones, glass and metal ingots, and semi-precious carnelian beads — clear evidence that the island was deeply embedded in the network of trade routes linking South Asia, the Middle East, and Southeast Asia. Experts believe further study may reveal the ship’s exact origins, possibly linking it to ancient trade between Sri Lanka and ports as far as Rome or China.

U.S. Support and Global Recognition

The project is being funded under the Ambassadors Fund for Cultural Preservation (AFCP), a U.S. Government program that has supported more than 1,100 projects in over 130 countries. In Sri Lanka, AFCP has previously contributed to the conservation of Buddhist temples, colonial-era structures, and traditional art forms. The Godawaya initiative marks a shift toward protecting maritime heritage, an area where Sri Lanka holds unique global significance.

Preserving for Future Generations

Artifacts recovered from Godawaya will be permanently preserved and displayed at the Maritime Archaeology Museum in Galle, ensuring accessibility for both Sri Lankans and international visitors. Scholars say this will not only enrich academic research but also boost heritage tourism, providing new opportunities for Sri Lanka’s economy.

A Deeper Message

Beyond archaeology, the collaboration signals how heritage diplomacy can strengthen bilateral ties. By helping safeguard Sri Lanka’s past, Washington is also investing in goodwill and shared cultural understanding. Analysts note that such projects underline the importance of heritage in national identity, while also reminding Sri Lanka of the strategic value of its geography and history in the wider Indo-Pacific.

Saudi Arabia’s Ambassador to Sri Lanka, Khalid Hamoud Nasser Alkahtani, has praised the Government’s new policy aimed at establishing a people-friendly health service free from corruption and malpractices.

He also assured Saudi Arabia’s continued support for the development of Sri Lanka’s health and media sectors.

The Ambassador made these remarks during a meeting with Health and Mass Media Minister Dr. Nalinda Jayatissa at the Ministry recently.

Prime Minister Dr. Harini Amarasuriya participated in the policy and research forum titled ‘Unlocking the Gender Dividend: Driving Policy Change Through Knowledge’, hosted by the United Nations Population Fund (UNFPA) Sri Lanka in Colombo on Wednesday (27).

At the event, four landmark reports were presented to the Prime Minister, providing policymakers, researchers, and civil society with critical evidence and policy recommendations to address persistent gender inequalities and emerging challenges in Sri Lanka, while promoting a more inclusive and equitable society.

Delivering the keynote address, the Prime Minister said, “Every woman and girl must be able to live with dignity, to be safe, and to contribute fully to the life of our country. When that is true, the whole nation moves.”

She also drew attention to the disproportionate burden of unpaid care work on women, noting that enabling women to balance employment and caregiving responsibilities is essential for national progress.

The forum was attended by UNFPA Sri Lanka Representative Kunle Adeniyi, Members of Parliament, and Women and Child Affairs Ministry Secretary Dr. Nalint Abeysinghe.

The Sri Lanka Air Force (SLAF) yesterday cautioned the public that flying kites near airport runways poses a serious safety hazard and has been identified globally as a contributory factor to air accidents.

“Such activity directly obstructs aircraft operations and endangers both passengers and crew. In Sri Lanka, kite flying in areas surrounding Katunayake, Ratmalana, Hingurakgoda, China Bay, Palaly, Katukurunda, Koggala, Vavuniya, Weerawila and Mattala is considered especially hazardous,” the SLAF said in a statement.

While acknowledging that kite flying is a popular pastime enjoyed by both children and adults during the season, the SLAF urged the public to refrain from flying kites in the vicinity of airport runways due to the grave danger it poses.

Wildlife officers have arrested five suspects for shooting and killing a pregnant doe in the Kukulkatuwa area of the Wilpattu National Park.

During the raid, officers also seized a firearm and the motorbikes used by the suspects early yesterday (28).

The arrested individuals, aged 31, 40, and 52, are drivers and employees of several private companies residing in Ranorawa, Nochchiyagama, and Anuradhapura. The raid was carried out following information that this group was frequently roaming in the Kukulkatuwa area and engaged in a meat-selling racket by hunting wild animals in the park at night.

The five suspected poachers are scheduled to be produced before court.

Public Security Minister Ananda Wijepala announced that the Government will establish special High Courts to expedite legal proceedings against organised criminals, ensuring swift trials and tougher enforcement.

Addressing a press briefing yesterday (28) at the Department of Government Information, the Minister said creating a disciplined society remains a top priority, and no one would be allowed to act above the law. Strong measures are underway to dismantle organised crime and the drug trade, which he said had long thrived under political patronage.

Over the past ten months, the Government has focused on restoring the rule of law by strengthening action against bribery, corruption, and fraud. “Frequent shootings, organised crime, and drug trafficking had become pressing public concerns. The people’s mandate was to free law enforcement institutions from political interference, and we have delivered on that,” Minister Wijepala noted.

Major Arrests and International Cooperation

Several key underworld figures have been apprehended, including notorious gang leader Kehelbaddara Padme, who was arrested in Indonesia along with five others following a week-long joint operation. Nearly 75 criminals remain on Interpol red warrant lists, while 20 fugitives have already been repatriated. The group arrested in Indonesia will be extradited shortly.

The Minister credited these successes to the independence now granted to police. “Such operations were only possible because law enforcement has been freed from political interference,” he stressed.

He further revealed that 72 T-56 rifles had leaked from military camps in previous years, of which 38 have since been recovered. Disciplinary measures have been taken against those responsible, and new safeguards introduced.

Global Networks and New Legislation

Public Security and Parliamentary Affairs Ministry Secretary Ravi Senaviratne said organised criminal groups based in India, Thailand, the Middle East, and Indonesia had expanded their operations into Sri Lanka, aided by political protection in the past. With international cooperation, Sri Lankan authorities have identified and arrested several such figures.

IGP Priyantha Weerasooriya noted that once political protection was withdrawn, many gang leaders fled abroad and continued to operate as international networks. Now, with restored independence, police have gained the trust of foreign counterparts. He highlighted recent arrests of high-profile suspects facing charges including murder, extortion, and drug trafficking, achieved entirely within international legal frameworks.

Plans are also underway to introduce new legislation specifically targeting organised crime. Investigations continue into staged incidents and prison-based networks, with efforts to prevent inmates from directing operations from within jails.

Law Enforcement Gains Ground

SSP Ruwan Kumara of the Crime Records Division reported that intensified police operations over the past two years have forced gangs to spend heavily to remain underground. A centralised database has been set up to track rivalries, and facial recognition systems installed at airports to detect suspects.

So far this year, police have seized nearly 200 high-powered weapons and over 1,600 other firearms, while arresting 338 suspects, including 36 contract gunmen.

“About 80% of shootings were linked to power struggles among drug and crime gangs,” DIG Kumara added. “While most victims were gang members, several civilians, including children, have also been killed. Compared globally, Sri Lanka Police now stands at the forefront of organised crime suppression.”

Restoring Public Confidence

Minister Wijepala reaffirmed the Government’s commitment:
“The establishment of special courts will ensure efficient trials and swift justice, paving the way for a society where citizens can live freely, securely, and with full confidence in the justice system.”