COLOMBO: The Sri Lanka apparel industry has received the Government’s full backing to overcome sectoral challenges and strengthen export-led economic growth, with President Anura Kumara Dissanayake pledging policy support, investment facilitation, and reforms aimed at boosting foreign exchange earnings.
Government to back Sri Lanka apparel industry with rural expansion, trade reforms, and investment facilitation to boost exports and foreign exchange earnings
The commitment was made during a high-level meeting at the Presidential Secretariat attended by leading apparel manufacturers, investors, and senior Government officials. The discussions focused on challenges facing the industry and the measures required to support the Export Development Board’s (EDB) new export strategy.
As Sri Lanka’s largest merchandise export sector, the Sri Lanka apparel industry continues to play a critical role in generating export revenue, attracting investment, and supporting the country’s economic recovery.
During the meeting, President Dissanayake stressed the importance of strengthening dollar-generating industries to maintain macroeconomic stability. While acknowledging an increase in investments denominated in Sri Lankan rupees, he said expanding foreign currency earnings remains essential to reducing pressure on the country’s external sector.
The President noted that sustainable economic recovery would depend on increasing export revenues and other foreign exchange inflows while maintaining prudent control over rupee-denominated expenditure.
A key area of discussion was the Government’s proposal to encourage industrial expansion into rural regions. The President said decentralising manufacturing operations would not only strengthen the country’s export-led growth strategy but also create employment opportunities and stimulate economic activity across the provinces.
To support this objective, the Government is considering introducing a “Plug and Play” investment model, under which investors would have access to ready-built factory facilities equipped with the necessary infrastructure. The initiative is expected to reduce capital investment requirements, shorten project implementation timelines, and encourage greater industrial expansion.
Land-related issues affecting investors also received considerable attention during the meeting. The President assured industry leaders that the Government would introduce measures to protect the value of land assets while ensuring policy consistency. He added that legal reforms addressing longstanding investor concerns are currently being prepared.
Representatives of the apparel sector also highlighted challenges faced by local raw material suppliers under the existing Value Added Tax (VAT) framework. In response, the President requested industry stakeholders to submit proposals outlining alternative support measures that would assist domestic suppliers while maintaining fiscal discipline.
The meeting further examined strategies to improve market access through new and expanded free trade agreements, as well as efforts to secure increased export quotas in key international markets.
Officials also updated participants on ongoing trade facilitation reforms. The National Single Window for Trade is expected to become operational by the end of July, streamlining trade procedures and reducing administrative delays. Meanwhile, the National Single Window for Investment is scheduled to be completed before the end of the year, further improving Sri Lanka’s investment environment.
President Dissanayake also outlined broader governance initiatives aimed at strengthening investor confidence. These include enhanced legal and technological mechanisms to prevent illicitly acquired assets from being transferred overseas and proposed legislation to combat organised crime while protecting civil liberties. The new legal framework is intended to replace the existing Prevention of Terrorism Act.
Industry representatives welcomed the opportunity to engage directly with the President and proposed establishing a monthly consultation forum with Government agencies to address operational challenges and policy issues affecting the Sri Lanka apparel industry.
Responding positively, the President instructed officials to make arrangements for regular engagement between Government institutions and industry stakeholders.
The meeting was attended by Labour Minister and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Treasury Secretary Dr. Harshana Suriyapperuma, Controller General of Imports and Exports Upulmalee Premathilaka, EDB Chairman Mangala Wijesinghe, officials from the Inland Revenue Department and Sri Lanka Customs, along with leading business leaders and investors representing the country’s apparel export sector.