Sri Lanka apparel exporters India integration has emerged as a strategic priority for 2026, as industry leaders call for deeper value-chain partnerships to sustain growth and competitiveness amid intensifying regional and global competition.
Sri Lanka apparel exporters India strategy targets deeper value chains
Sri Lanka’s apparel industry is seeking deeper integration with India as part of a broader strategy to secure long-term competitiveness, strengthen regional supply chains and participate more meaningfully in India’s rapidly expanding apparel ecosystem. Industry leaders warn that accelerating competition across Asia leaves little room for complacency.
Speaking at the Sri Lanka Apparel Exporters Association’s (SLAEA) 2025 Annual General Meeting, Chairperson Rajitha Jayasuriya outlined the sector’s forward agenda, identifying closer engagement with India, faster technological transformation and urgent policy reforms as critical priorities for 2026 and beyond.
She said securing quota-free access to the Indian market, ensuring predictable trade flows and strengthening integration within regional value chains will be essential to sustaining export growth. According to Jayasuriya, a stronger India–Sri Lanka apparel corridor represents not just an economic opportunity, but a strategic necessity for both countries.
India’s rapid rise as a global apparel market, sourcing hub and retail destination makes deeper collaboration increasingly relevant for Sri Lankan manufacturers. By aligning more closely, Sri Lanka could expand its role in India’s growing retail and apparel ecosystem while reinforcing regional trade linkages and shared value creation.
Jayasuriya emphasised that such collaboration would enable a mutually value-adding partnership, allowing Sri Lanka to move beyond transactional trade and embed itself more firmly within regional production networks. This approach, she said, would support resilience at a time when supply chains are being reshaped by geopolitical, economic and climate-related disruptions.
She also highlighted the importance of diplomatic and institutional support in advancing this vision, noting that continued engagement with Indian High Commissioner Santosh Jha and senior Indian officials, including Deputy High Commissioner Dr. Satyanjal Pandey, will be vital in translating industry aspirations into practical outcomes.
While outlining opportunities, Jayasuriya cautioned that competition within Asia is intensifying rapidly. Cambodia has emerged as the fastest-growing apparel supplier to the United States, the European Union and the United Kingdom, while Vietnam continues to advance through automation, smart factory investments and an expanding network of trade agreements. Bangladesh, meanwhile, maintains its dominance in large-scale basic apparel production.
Against this backdrop, she stressed that Sri Lanka must continue to evolve if it is to protect and expand its market share. The industry’s roadmap for 2026, she said, is built around urgency, sharper focus and sustained forward momentum.
Jayasuriya welcomed encouraging signals in the Government’s 2026 Budget, including export-friendly measures, digital tax reforms and targeted investment incentives. However, she noted that much of the reform agenda remains incomplete, underscoring the need for faster execution and policy consistency.
Technology and innovation form a central pillar of the industry’s strategy. The sector plans to accelerate automation, deepen the adoption of artificial intelligence and transition towards fully data-driven operations. Market diversification is also a core focus, with exporters seeking to expand Sri Lanka’s footprint across Asia, the Middle East and Africa, where new opportunities are emerging.
Workforce development remains equally critical. Jayasuriya said the industry will continue investing in skills development, strengthening gender equity and safeguarding worker wellbeing, emphasising that people remain the foundation of Sri Lanka’s apparel sector and a key differentiator in global markets.
Sustainability and environmental, social and governance performance are expected to play an even stronger role going forward. The industry is committed to enhancing traceability, embedding circularity into production processes and reducing emissions across the value chain to meet evolving buyer expectations and regulatory requirements.
To support these ambitions, Jayasuriya reiterated calls for decisive Government action. Priority measures include improving ease of doing business through full implementation of the National Single Window and Electronic Travel Authorisation systems, establishing a dedicated trade office to focus on key free trade agreements, and accelerating supply chain infrastructure development, including the full operationalisation of the Eravur Fabric Park.
She also stressed the need for policy stability and closer collaboration with domestic and international partners to build a skilled workforce and provide financial and technical support to small and medium enterprises, enabling them to meet global sustainability and traceability standards.
Reflecting on her first year as the first woman Chairperson of the SLAEA, Jayasuriya said the milestone quickly gave way to the scale of challenges confronting the industry. These included tariff uncertainty in the United States, geopolitical instability linked to the Russia–Ukraine conflict, Red Sea disruptions, domestic tax changes and climate-related shocks, all unfolding during Sri Lanka’s economic recovery under an IMF-supported programme.
Despite these pressures, export performance remained resilient. Exports to the United States grew by 2.15 percent, shipments to the United Kingdom increased by 0.74 percent and non-traditional markets expanded by 4.8 percent. Exports to the European Union rose sharply by 12.48 percent, reinforcing Europe’s role as a stable long-term partner.
Looking ahead, Jayasuriya described the United Kingdom’s Developing Countries Trading Scheme, effective from January 2026, as one of the most advantageous trade regimes Sri Lanka has secured, providing tariff-free access and full global sourcing flexibility.
She concluded that deeper regional integration, particularly with India, alongside sustained reform, innovation and partnership, will determine whether Sri Lanka merely competes or actively shapes the future of global apparel manufacturing.