Sri Lanka's Apparel Sector Targets $8Bn to Drive National Export Growth 📈

Sri Lanka's apparel & textiles industry—accounting for ~40% of merchandise exports and 300,000–350,000 jobs—is seeking policy alignment to overcome stalled $5 Bn annual export levels and reach new national growth goals. • Macro Context & Targets • National Export Development Plan (NEDP) targets $28 Bn in merchandise exports by 2030 (up from $13.6 Bn in 2025). • Joint Apparel Association Forum (JAAF) targets US$ 8 Bn for the apparel & textiles sector. • Strategic Industry Demands • Supply Chain & Investment: FDI incentives to boost local supply chains, especially in synthetic yarn/fabric where domestic production meets under 33% of demand. • Technology & Productivity: Pushing automation, robotics, and AI-driven manufacturing to drive productivity rather than relying solely on expanding sewing lines. • Market Access: Renewing EU GSP+ in 2027, securing US preferential trade deals, enhancing the India FTA, and pursuing new FTAs with Japan, South Korea, Australia, and New Zealand. • Policy & Infrastructure: Fast-tracking renewable energy (power wheeling/battery storage), enacting labor law reforms, clarifying VAT terms, and establishing a single-window regulatory approval system.