Ethical apparel production should remain the cornerstone of Sri Lanka’s market identity, reinforcing its reputation for responsible manufacturing
THREADING A CIRCULAR ECONOMY
Rajitha Jayasuriya urges the apparel industry to transition to a circular economy
Q: How do you plan to strengthen Sri Lanka’s position as a global apparel hub – and how do you see the industry evolving over the next five years?
A: It is crucial to strengthen Sri Lanka’s position as a global apparel hub with the industry focussed on prioritising sustainability, innovation and market diversification.
Ethical apparel production should remain the cornerstone of Sri Lanka’s market identity, reinforcing its reputation for responsible manufacturing.
Embracing automation, robotics and smart manufacturing technologies will be essential to improving efficiency and reducing production costs over the next five years. In addition, expanding into underrepresented markets such as India, the UK and the EU through FTAs will help reduce overreliance on the US market, and create new growth opportunities.
Continued advocacy for sustainability through initiatives such as textile waste recycling, renewable energy adoption and circular manufacturing will be critical to maintaining competitiveness in the evolving global market.
Q: What do you believe are the main challenges facing Sri Lanka’s apparel exporters today? And how can the Sri Lanka Apparel Exporters Association (SLAEA) address them?
A: Apparel exporters face several challenges including rising costs, overreliance on the US market, limited local textile production and logistics constraints.
Despite the 20 percent reduction in energy tariffs, electricity costs remain higher than those of regional competitors including Bangladesh and Vietnam, impacting production margins.
Additionally, labour costs are higher as Sri Lanka competes against countries offering lower wages and government backed incentives. Reliance on the US market, which accounts for 40 percent of apparel exports, makes us vulnerable to shifts in trade policies and economic fluctuations.
Furthermore, limited local textile production increases dependency on imported fabric leading to higher costs and longer lead times. And while logistics infrastructure has improved, it still lags behind our competitors, affecting supply chain efficiency.
In order to address these challenges, SLAEA is advocating for energy reforms, pushing for policies that incentivise the adoption of renewable energy to lower operational costs and enhance global competitiveness.
Accelerating the development of fabric parks such as the Eravur Fabric Park will help reduce dependence on imported textiles, lowering costs, improving lead times and increasing self-sufficiency. Enhancing logistics efficiency through improved port operations, and better road and rail connectivity, is also essential to reducing delays and costs.
Additionally, promoting market diversification by expanding Sri Lanka’s presence in under-represented markets including the EU, APAC and the Middle East will help reduce dependency on the US market, and mitigate risks from market fluctuations.
Q: How is the association working with the government and policymakers to strengthen the industry’s competitiveness?
A: Together with its apex body the Joint Apparel Association Forum (JAAF), SLAEA is engaging with the government and policymakers to drive policies that strengthen the industry’s global competitiveness.
A main focus area is advocating for the establishment of more free trade agreements to expand access and reduce trade barriers.
The association is also championing energy reforms to reduce operational costs and improve sustainability across the industry. We’re also pushing for tax incentives that encourage sustainable manufacturing practices, particularly with the decision to remove the simplified value added tax (SVAT) scheme for all exporters, which is expected to create major cash flow challenges and related complications.
To strengthen the industry, SLAEA is lobbying for labour reforms and critical upgrades to logistics, port facilities and customs processes, in order to streamline supply chains and minimise delays.
Another priority is the swift implementation of the Economic Transformation Act, which aims to simplify investment processes and attract foreign investments in advanced manufacturing technologies.
Q: With rising competition the world over, what steps can apparel exporters take to differentiate themselves?
A: Apparel exporters must focus on high value segments such as athleisure, adaptive wear and technical textiles. These categories offer higher profit margins and cater to evolving consumer needs, positioning Sri Lanka as a leader in innovative fashion.
Additionally, exporters can leverage the country’s strong reputation for ethical manufacturing, sustainability and premium quality products, which is a significant competitive edge. This reputation enhances Sri Lanka’s appeal in world markets where buyers prioritise responsible sourcing.
Furthermore, exporters must improve supply chain transparency to meet the growing demand for ethically sourced and sustainable products. This will be particularly important in markets where consumers and brands place a high emphasis on responsible production.
Q: What opportunities do you see for Sri Lanka in emerging apparel markets?
A: We have many opportunities in emerging apparel markets – particularly Asia, the Middle East and Africa, where demand is expanding. These markets are a strong avenue for diversification and global expansion. India, as one of the largest and closest growing markets, presents an opportunity for Sri Lankan apparel to establish a stronger presence.
Our commitment to ethical manufacturing and sustainability is a major advantage in emerging markets, where the demand for responsibly produced clothing is on the rise. By leveraging our reputation, and integrating eco-friendly practices with innovative and sustainable raw materials, Sri Lanka can position itself as a preferred sourcing destination.
Additionally, investing in digital infrastructure and e-commerce platforms is crucial for apparel exporters to access consumers in these markets, given the rapid rise of online retail.
Innovation will also play a vital role in maintaining competitiveness, particularly in high value segments.
Finally, long-term growth will require strategic government support through policies that facilitate market access, infrastructure investments and a continued focus on sustainability.
Q: Sustainability is a key focus for the apparel industry. How is SLAEA promoting sustainable practices among exporters?
A: SLAEA is promoting sustainable practices by advocating for investments in textile waste recycling and the adoption of renewable energy. These initiatives reduce the industry’s environmental impact, and enable manufacturers to reduce operational costs and remain competitive.
A main focus is encouraging the transition to a circular economy within the apparel industry by supporting the use of recycled materials and enhancing recycling infrastructure.
Additionally, the association is working to ensure that manufacturers align with global sustainability standards, which is particularly crucial for competitiveness in markets where sustainability plays a major role in purchasing decisions.
To further support the industry’s long-term growth, SLAEA is also advocating for policies that incentivise green manufacturing practices.
Rajitha Jayasuriya is the Chairperson of the Sri Lanka Apparel Exporters Association and Director Corporate Affairs of MAS Holdings.
Ethical apparel production should remain the cornerstone of Sri Lanka’s market identity, reinforcing its reputation for responsible manufacturing
Telephone 2675050
Email info@srilanka-apparel.com
Website www.srilanka-apparel.com