The Joint Apparel Association Forum Sri Lanka (JAAFSL) has unveiled a bold vision to help the country’s apparel sector chase its next milestone of US$8 billion in exports, aligning with the Government’s National Export Development Plan (NEDP) which aims to double merchandise exports from US$13.6 billion in 2025 to US$28 billion by 2030.
In a statement, JAAFSL said for three decades, apparel has been the backbone of Sri Lanka’s export economy, contributing nearly 40% of merchandise export revenue and employing 300,000–350,000 people. The sector’s first transformation in the 1990s, driven by the 200 Garment Factories Programme, expanded manufacturing beyond Colombo, created rural jobs, and built the industrial base that still sustains the industry today.
But industry leaders say the old model has reached its limits. With exports hovering around US$5 billion for the past five years, JAAFSL argues that the next phase must focus on value addition, innovation, automation, productivity, market diversification, and moving further up the global value chain.
Key industry asks
- Investment incentives: Attract new foreign direct investment and encourage reinvestment in fabric mills, trims, and packaging to reduce reliance on imports. Synthetic yarn and fabric remain critical gaps, with local production meeting only a third of demand.
- Automation and AI: A dedicated push toward robotics and AI‑driven manufacturing to boost productivity and remain competitive against global hubs.
- Trade access: Secure EU’s new GSP+ scheme in 2027, pursue preferential trade with the United States, strengthen the FTA with India, and open negotiations with South Korea, Japan, Australia, and New Zealand.
- Institutional reforms: Establish a genuine one‑stop shop for exporters, streamline VAT treatment, allow more flexibility in foreign currency transactions, and modernize labour laws.
- Energy policy: Fast‑track open access and power wheeling regulations, alongside incentives for battery storage, to ensure reliable and sustainable power for manufacturers.
Industry leaders stress that commitments to new investment, productivity gains, local supply chain development, and job creation must be matched by government action on market access, competitive taxation, reduced business costs, and regulatory certainty.
This is not just about recovering lost ground. A more resilient, higher‑value apparel sector would help Sri Lanka withstand global shocks better than the current model.
The question, JAAFSL says, is whether government agencies can move quickly enough to align policy with industry proposals, just as they did three decades ago when coordinated action reshaped the sector. (Newswire)
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