To reach US$8 billion, Sri Lanka apparel must grow differently

By Felix Fernando, Chairman, Joint Apparel Association Forum (JAAF) 

Sri Lanka’s apparel industry has earned its place in the global market through consistency, trust, and a strong reputation for ethical manufacturing. Over many years, we have shown that Sri Lanka can deliver quality, compliance, and reliability at a level that global brands value. That foundation remains one of our greatest strengths. But the next chapter for this industry cannot be built on reputation alone. It has to be built on growth that is measurable, broader in base, and more resilient in the face of global change. As Chairman of the Joint Apparel Association Forum, I believe the task before us is clear: Sri Lanka must move with greater purpose toward the long-discussed ambition of becoming a US$8 billion apparel export industry. 

That ambition is important because it gives the industry a shared direction. But it must now be treated as more than a headline target. It must become a practical national agenda. Sri Lanka Apparel’s published export data show that textile and apparel exports for 2025 amounted to just over US$5.0 billion. That is a meaningful achievement, particularly in a demanding global environment, but it also shows that there is still a substantial gap between current performance and where we say we want to go. Closing that gap will require more than incremental improvement. It will require sharper execution, stronger coordination, and a more deliberate growth model. 

One of the most important realities we must confront is market concentration. Our industry has traditionally depended heavily on the US, EU, and UK, and together these destinations account for about 85 percent of Sri Lanka’s apparel exports. That concentration has served us well in some respects, because these are mature and valuable markets where Sri Lanka has built long-standing relationships. But concentration at that level also creates vulnerability. When consumer demand weakens, tariffs shift, compliance expectations tighten, or brands change sourcing patterns in those markets, the effects are felt across our entire industry. 

This is why diversification must now move to the centre of our export strategy. If Sri Lanka is serious about reaching US$8 billion, we cannot rely on the same market mix and expect a fundamentally different outcome. We need to build stronger export pathways into newer regions and expand our relevance in markets that have not yet been fully developed. ASEAN, the Middle East, Africa, and parts of Asia must become part of a structured and sustained growth effort. This is not about replacing our traditional markets. It is about reducing risk, widening opportunity, and building a more balanced export portfolio over time. 

At the same time, diversification should not be understood only in geographic terms. It is also about moving up the value chain. Sri Lanka cannot compete on volume alone, and it should not try to. Our advantage lies in being a premium sourcing destination, one that brings together product integrity, speed, sustainability, technical capability, and increasingly, stronger design and development input. We must ensure that Sri Lanka is not viewed simply as a production base that executes instructions, but as a partner that contributes value, thinking, and innovation throughout the sourcing relationship.

That means we also need to become more disciplined in how we define progress. Export growth should not be reduced to one annual number. We must measure what kind of growth we are generating, where it is coming from, and whether it is making the industry stronger. Are we increasing our share in higher-value categories? Are we entering new markets in a meaningful way? Are we improving lead times and deepening customer relationships? Are we strengthening design capability and sustainability performance in ways that help us command better value? These are the questions that should shape our next phase.

No industry can achieve an ambitious export target, however, without the right operating environment. Sri Lanka must improve the systems that support trade. Faster customs processes, stronger digital integration across approvals, lower administrative friction, and more predictable policy are not side issues. They are core to competitiveness. In an industry where delivery timelines matter, delays at any point in the system affect confidence, planning, and future order allocation. Trade facilitation must therefore be treated as an export growth issue, not merely an administrative reform issue. 

The same applies to the broader investment climate. If Sri Lanka wants to attract fresh capital, deepen value addition, and strengthen its manufacturing base, we have to be seen as commercially responsive as well as ethically strong. Investors look for clarity, speed, stability, and confidence that business can be done efficiently. This matters not only for foreign investment, but also for the expansion decisions of companies already operating in Sri Lanka.

The opportunity is still very much in front of us. Sri Lanka apparel has the capability, the reputation, and the institutional knowledge to grow beyond its current scale. But the route to US$8 billion will not come from doing more of the same. It will come from measurable export growth, deliberate diversification, stronger systems, and a clear commitment to higher-value positioning. If we align around those priorities and act with consistency, the industry can move into its next chapter with greater strength and greater confidence.