EDB partners with Swiss SECO to launch GTEX2 to boost apparel industry

 The Export Development Board (EDB) yesterday entered into a strategic agreement with the State Secretariat for Economic Affairs of Switzerland (SECO) to implement the second phase of the Global Program on Textile and Clothing (GTEX2), aimed at enhancing the apparel sector.

The five-year program, running from 2024 to 2027, is funded by the Swiss Government and organised in collaboration with the Swedish International Development Cooperation Agency (SIDCA) and the International Trade Centre (ITC), which provides technical assistance. A National Project Coordinator (NPC) has been appointed in Sri Lanka to oversee the project’s implementation.

The EDB, in conjunction with the Joint Apparel Association Forum Sri Lanka (JAAF), will work with the Swiss Confederation on GTEX2, which includes other participating countries such as Egypt, Jordan, Morocco, and Tunisia. The program seeks to support small and medium-sized enterprises (SMEs) in the textile and clothing industry to enhance their operational capacities, adhere to social norms and environmental sustainability, add value to products and services, and expand exports to both traditional and new markets.

At the launch, Investment Promotion State Minister Dilum Amunugama stated that the program will drive the industry towards sustainable practices and bolster its global competitiveness by integrating advanced digital technologies.

“This partnership is expected to significantly boost Sri Lanka’s efforts to transform the textile and apparel industry, making it more competitive and sustainable on the global stage,” he added.

He highlighted that the textile and clothing industry in Sri Lanka is robust, ethical and sustainable, meeting global demands for high-quality fashion products. 

In 2023, the sector generated over $ 4.8 billion, accounting for 42% of total merchandise exports, with key markets including the US, UK and EU. Contributing 7% to the Gross Domestic Product (GDP), it is the largest single sector contributor.

The country aims to achieve an export revenue target of $ 8 billion by 2025. 

He outlined that Sri Lanka has pioneered sustainable manufacturing with significant changes in processes, sourcing strategies and product innovation. 

“Ethical manufacturing practices include the absence of child labour, forced labour, discrimination, and sweatshop practices, earning the industry the slogan “Garments without guilt.” The industry remains competitive with companies investing in sustainability strategies,” he added.

Amunugama highlighted that Sri Lanka hosts the world’s first custom-built green apparel factory and Asia’s first Carbon Neutral Certified factory, along with numerous LEED Platinum and Gold Certified manufacturing plants. Many factories are dedicated to zero-carbon operations, implementing zero-waste policies, strategic waste management systems and investing in renewable energy sources like solar, wind and hydropower.

He said with around 350 garment factories and 16 textile and fabric manufacturing units, the industry is crucial for advancement. It directly employs 300,000 people and indirectly supports around 350,000 more, with a significant portion of the workforce comprising rural women, providing livelihoods for their families.

Given this context, the State Minister said the collaboration marks a significant step towards a more sustainable and digitally advanced textile and apparel industry in Sri Lanka.

EDB Chairman Dr. Kingsley Bernard expressed gratitude for the support from the Swiss Embassy in Sri Lanka and the Swiss Confederation, emphasising the program’s potential to uplift the apparel industry. Dr. Bernard noted that in 2022, a comprehensive market research study facilitated by the Swiss Import Promotion Program (SIPPO) identified new market segments, product ranges, and sustainability impact areas for the Sri Lankan apparel industry. The success of this research led to Sri Lanka’s inclusion in GTEX2.

“I am confident that this program will contribute to economic growth and poverty reduction through sustainable trade and decent job creation along the textile and clothing value chain, whilst providing the industry with the motivation and guidance to realise the country’s potential and drive the nation towards achieving its set targets,” Dr. Bernard said.