Sri Lanka Apparel Sector Eyes Strategic Integration with India 📈

The Sri Lanka Apparel Exporters Association (SLAEA) has identified deeper integration with India’s retail ecosystem and urgent policy reforms as top priorities for 2026 to counter rising regional competition from Vietnam and Bangladesh. • Market Performance (2025) • European Union: +12.48% (Sharpest growth, remains a strategic partner) • Non-traditional Markets: +4.8% • United States: +2.15% (Growth despite tariff uncertainties) • United Kingdom: +0.74% (Benefit expected from the new DCTS tariff-free access) • Strategic Priorities • Seeking quota-free access to the Indian market and integration into regional value chains. • Accelerating ICT/BPM integration through AI-driven operations and automated "smart factories." • Full operationalization of the Eravur Fabric Park to strengthen the domestic supply chain. • Policy & Reform Needs • Urgent implementation of the National Single Window (NSW) to improve the ease of doing business. • Introduction of a national e-invoicing system to manage liquidity following the removal of SVAT. • Securing the renewal of GSP+ to maintain competitiveness against India’s upcoming FTA with the EU. • Sustainability & ESG • Focus on circularity, emission reduction, and compliance with the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). • Investment in workforce development and gender equity to maintain ethical production standards.