Redefining leadership in Sri Lanka’s apparel industry

Sri Lanka Apparel Exporters Association Chairperson Rajitha Jayasuriya

One of the biggest concerns facing the export industry right now is the proposed removal of the SVAT scheme. The removal of SVAT could end up crippling the apparel industry which is already subject to very high rates of taxation and other costs of manufacturing, when compared to our regional competitors. There will be a large impact, not only on the cash flow of the large exporters, but also the longevity of the supply chain and the SMEs. We also have to continue to advocate for policies that streamline business processes and improve supply chain capabilities

Being the first woman chair of the Sri Lanka Apparel Exporters Association (SLAEA) is both an honour and a responsibility I take seriously. It’s an exciting milestone for me, but more importantly, it’s a step forward for the industry in terms of diversity and inclusivity. I see this as an opportunity to bring fresh perspectives to the table, advocate for equal opportunities, and support the next generation of women leaders in the sector

Sri Lanka’s apparel industry is about to embark on an exciting new chapter. As the first woman to take the helm of the Sri Lanka Apparel Exporters Association (SLAEA), Rajitha Jayasuriya, the new Chairperson, is advocating for strategic industry advancements. In response to global market shifts and local challenges, her focus is on influencing key policy changes, addressing high energy costs, and promoting the adoption of cutting-edge technology. From driving discussions on sustainability innovation to encouraging diversification of export markets, she is lobbying for initiatives that will strengthen the sector’s global standing. She is focused on shaping industry policies and partnerships to future-proof Sri Lanka’s apparel industry in a competitive global landscape. Following are excerpts of an interview with Jayasuriya.

Q: As the new Chairperson of SLAEA, how do you plan to strengthen Sri Lanka’s apparel industry amid economic challenges and shifting global markets?

 Sri Lanka’s apparel industry is the country’s largest export contributor, accounting for over 40% of total exports and generating approximately $ 4.7 billion annually. With a target of $ 8 billion, achieving this requires clear policies, infrastructure development, and proactive Government support. The sector also provides over 350,000 direct jobs and sustains millions more, making it a key driver of economic and social stability.

One of the immediate priorities is advocating for solutions to high energy costs, which place Sri Lanka at a disadvantage compared to competitors like Bangladesh and Vietnam. Lobbying for a stable energy pricing policy and encouraging investments in renewable energy, will be key in improving cost efficiency. Operational inefficiencies in the utility sector must also be resolved to ease financial pressure on manufacturers. Another key focus is fast-tracking the Eravur Fabric Park to reduce dependence on fabric imports, lower production costs, and enhance lead times. Streamlined approvals and investor incentives are crucial to ensuring its swift completion.

Policy stability remains a pressing concern, with frequent changes in currency regulations, VAT increases, and the removal of SVAT disrupting cash flows and the stability of the on island supply chain manufacturers. Strengthening bilateral and regional trade agreements with India, China, and Japan will help diversify export markets and reduce reliance on the US, which currently accounts for about 40% of exports.

Q: How do you envision leveraging technology, innovation, and workforce development to strengthen Sri Lanka’s position as a trusted apparel sourcing destination under your leadership?

 During my tenure, I will continue to support Sri Lanka’s apparel industry to harness technology, innovation, and workforce development to reinforce our position as a trusted global sourcing destination. We need to embrace digital transformation, integrating AI, automation, and data analytics to enhance efficiency, sustainability, and transparency across the supply chain. We need to catch up with the competition and harness innovation to drive our competitive edge as a country, from smart manufacturing to sustainable materials, ensuring we meet evolving global standards.

At the heart of this transformation is our workforce. Investing in skills development, upskilling, and ethical labour practices will empower our people, fostering a culture of excellence and adaptability. Sri Lanka has been recognised and respected for our deep-rooted commitment to quality, sustainability, and ethical manufacturing. We need to make sure that we not only retain but strengthen this reputation as a premier apparel hub. Our goal is clear: to be the preferred partner for global brands seeking reliability, innovation, and responsible sourcing in a rapidly evolving fashion landscape.

Q: The apparel industry has faced numerous challenges in recent years. What strategies will you implement to diversify Sri Lanka’s export markets and ensure the industry remains resilient in a rapidly evolving global landscape? 

Sri Lanka’s apparel industry must diversify its export markets to reduce reliance on the US, which currently accounts for 40% of exports. Expanding trade with underrepresented regions—such as the UK (14.17%), the EU (27.27%), APAC (e.g., India at 1.52%), and the Middle East (0.99%)—is crucial. Securing an Economic and Technology Cooperation Agreement (ETCA) with India and Free Trade Agreements (FTAs) with APAC nations, and Canada will open new opportunities and enhance market resilience.

Improving supply chain efficiency is another priority. With Sri Lanka ranked 73rd in the 2023 Logistics Performance Index, and advocating for streamlined port operations and digitised customs processes will be key. Collaborating with policymakers to reduce export delays and strengthen road and rail connectivity will further enhance competitiveness.

The industry must also move up the value chain by focusing on premium segments such as athleisure, adaptive wear, and technical textiles. Investing in blockchain-based traceability will help meet growing demand for transparency, particularly in EU markets. These strategies will ensure Sri Lanka’s apparel sector remains agile and globally competitive.

Q: Given the importance of Government support for the apparel sector, what key policies do you plan to advocate for to enhance ease of doing business and improve Sri Lanka’s supply chain capabilities?

 One of the biggest concerns facing the export industry right now is the proposed removal of the SVAT scheme. The removal of SVAT could end up crippling the apparel industry which is already subject to very high rates of taxation and other costs of manufacturing, when compared to our regional competitors. There will be a large impact, not only on the cash flow of the large exporters, but also the longevity of the supply chain and the SMEs. 

We also have to continue to advocate for policies that streamline business processes and improve supply chain capabilities. Key priorities include fully implementing the Economic Transformation Act of 2024, which can simplify investment approvals through a Single-Window system and attract Foreign Direct Investment (FDI) in the supply chain, advanced manufacturing, and sustainable technologies. Incentives should be provided to encourage investment in green infrastructure and local textile production, like with the creation of industrial zones like the Eravur Fabric Park, to reduce raw material imports. Stable foreign exchange policies, and taxation policies are essential for the stability of the entire industry. 

Sri Lanka has been recognised and respected for our deep-rooted commitment to quality, sustainability, and ethical manufacturing. We need to make sure that we not only retain but strengthen this reputation as a premier apparel hub. Our goal is clear: to be the preferred partner for global brands seeking reliability, innovation, and responsible sourcing in a rapidly evolving fashion landscape

ETCA with India and FTAs with APAC nations, and Canada will open new opportunities and enhance market resilience. Improving supply chain efficiency is another priority. With Sri Lanka ranked 73rd in the 2023 Logistics Performance Index, and advocating for streamlined port operations and digitised customs processes will be key. Collaborating with policymakers to reduce export delays and strengthen road and rail connectivity will further enhance competitiveness

Q: You are the first woman chair of the SLAEA – what are your thoughts on this? 

 Being the first woman chair of the Sri Lanka Apparel Exporters Association (SLAEA) is both an honour and a responsibility I take seriously. It’s an exciting milestone for me, but more importantly, it’s a step forward for the industry in terms of diversity and inclusivity. I see this as an opportunity to bring fresh perspectives to the table, advocate for equal opportunities, and support the next generation of women leaders in the sector.