The Sri Lankan Apparel industry began modestly in the 1960s, producing mainly for the local market under heavy protectionism. The liberalisation of the economy in 1977 boosted the sector, encouraging both local and foreign investment, and by 1986 Apparel accounted for the largest share of exports. Owing largely to a Board of Investment (BOI) incentive package, over 160 factories were established between 1992 and 1995, and by 2002, Garments accounted for 52% of Sri Lanka’s total exports.

Today, the sector provides employment for nearly 1 million people (approximately 15% of Sri Lanka’s workforce), and exports to major global markets including the USA, the EU, and Canada. Total export revenue earned in 2018 amounted to $5 billion, and is projected to reach $8 billion by 2025, with Sri Lanka enjoying the highest apparel exports per capita in the region.

Competitiveness

Initially driven by a low-wage, low-cost model of competition, the Sri Lankan apparel industry has evolved to provide sophisticated and efficient solutions to the industry’s complex global needs.

Sri Lanka’s international reputation is well-based. The free education system produces a large number of highly educated, skilled, competent graduates who have enabled the industry to thrive. The island’s strategic location at the nexus of international shipping routes, as well as its proximity to India, enable manufacturers to access major global markets with speed and efficiency.

This advantage is bolstered by investment & business oriented government policy, as well as rapid innovation. The return of peace & stability in 2009 has opened up the North & East to business, providing unprecedented opportunities for investment & capacity expansion. Already, 10 factories are under construction in the region, with more projects underway.

With over four decades of experience, Sri Lanka’s manufactures apparel of the highest quality, producing for a range of prestigious international clothing brands including Victoria’s Secret, Pierre Cardin, GAP, Liz Claiborne, Next, Tommy Hilfiger, and Nike. This rapid development of the industry has transformed Sri Lanka into a regional Apparel Hub, with its top 3 apparel companies amongst the world’s 50 most important suppliers.