Is this the reset Sri Lankan apparel industry needed?
It began, as these economic turning points often do, not with a grand announcement, but with a crowded room, a stack of grievances, and a ticking clock on export earnings.
President Anura Kumara Dissanayake recently met with leading business leaders at the Presidential Secretariat in a high-level discussion aimed at resolving challenges facing Sri Lanka’s apparel sector and boosting the country’s export earnings.
Around the table were the top government officials, Sri Lanka Customs and other relevant agencies, and several leading apparel sector leaders and investors, all grappling with the same question—how to make the Export Development Board’s new export strategy not just another policy document, but a functioning engine of growth.
President Dissanayake reportedly assured full government backing for strengthening the export economy, outlining a sharper policy direction. His pitch leaned heavily on rural industrial expansion, inviting investors to look beyond traditional hubs.
The centrepiece idea: a government backed ‘Plug and Play’ model, offering ready-made factory spaces and infrastructure to cut delays and lower entry barriers for new investments.
But the tone was not just promotional; it was corrective, going by the media reports that followed the high-profile meeting. The President reportedly noted that while rupee-denominated investment has picked up, Sri Lanka’s real pressure point remains dollar earnings. The recovery formula, he stressed, is simple: earn more dollars, spend fewer rupees.
Stakeholders did not hold back either. Land access issues, policy uncertainty, and VAT pressures on local raw material suppliers came up in sharp relief. In response, the President reportedly promised government intervention to stabilise land values and fast-track legal reforms.
On tax friction, he reportedly asked the industry players to submit concrete proposals for alternative relief measures.
Trade expansion also entered the spotlight, with discussions on widening free trade agreements and securing higher export quotas to unlock new markets. Meanwhile, a major reform milestone is approaching, with the National Single Window for Trade expected to become fully operational by the end of July, and its investment counterpart reportedly targeted for completion by year-end; an upgrade that could significantly speed up business processes by cutting through bureaucratic hurdles.
By the end of the meeting, industry representatives made one final request: to institutionalise the dialogue as a monthly forum, aimed at preventing issues from piling up into full-blown crises. According to reports, the President agreed on the spot.
For Sri Lanka’s garment sector, the meeting delivered what it has long sought: access, attention and assurances; but whether those promises evolve into a defining turning point will hinge on execution, even as the sector enters the next phase with renewed momentum after apparel and textile exports climbed 7.96 per cent YoY to $394.14 million in May 2026, the strongest monthly performance of the year so far and a sign that demand across key export markets is finally rebounding after a difficult start to 2026.
Fibre2Fashion News Desk (DR)
