Sri Lankan Apparel Industry Capability

Having its ups and downs like any other industry, the Sri Lankan apparel sector has come a long way ever since it started from the bottom, turning out to become the most important income sector for the country’s economy. Starting in the 1950s, Sri Lankan garments were handled by a small number of industrialists. Their main focus was to serve the local demand for day-to-day garments. This protected market was given more exposure with the import barriers that were placed by the end of the 1950s.As a result, by the 1960s there were 300 categories of industrial products manufactured by local garments. It was also during this time, these products were introduced to the export market.

The recognition gained by the Sri Lankan apparel sector today is purely based on its excellence in speedy delivery and reliability. Serving worldwide supply chains, the sector is also the main centre of production for major brands such as Nike, Speedo, Victoria’s Secret, Triumph, etc. There is a high demand for Sri Lankan apparel in European countries such as the United Kingdom, Italy, Germany, Belgium, and the Netherlands. It also enjoys similar demand from the United States, Canada, China, Japan, Hong Kong, and the United Arab Emirates.

Labour and Workforce

All the activities in the Sri Lankan apparel sector are carried out by private entities. They also provide their workforce with training, good wages, perks, and other benefits. Job creation and employment are vital within the entire sector. No other industry present within the country offers jobs like the apparel sector does. The industry directly employs 350,000 people along with another 350,000 individuals (approximately) indirectly to sustain this workforce.

The total number of employees serving the apparel sector represents 15% of the entire country’s industrial workforce. The Sri Lankan apparel sector is also a place where women empowerment is highlighted. Almost every female employee serving the local industry is financially independent since they receive good compensation for their service. The total female workforce participation rounds up to 34%.

Garments without Guilt

Sri Lanka is globally renowned for its ethical practices when handling labour. Under the guidelines issued by the Board of Investments (BOI), all plants operate employee councils where employees and employers work together on resolving matters through mutual concern. Most plants are also required to undergo independent third-party audits to ensure compliance to both local laws and buyer stipulated requirements. In general, a factory employee in Sri Lanka receives compensation of Rs. 40,000 per month, which in most cases include transport, meals, insurance, and other benefits. There are no sweatshops or any underaged employment within the industry. As a result, garments made in Sri Lanka are presented to the export markets as “Garments without Guilt”.

Made in Sri Lanka

Sri Lanka is the world’s number one ethical apparel sourcing destination. Each garment that leaves the country with the label “Made in Sri Lanka” symbolizes quality, reliability, and accountability. The country also holds the record of being the first garment sourcing destination with a green garment factory. This concept has been continued by a majority of local factories where strategic waste management systems are being practised. The sector continues to invest in energy sources such as solar, wind, and hydropower. Therefore, each garment released by these factories marks the values of environmental sustainability.

Download the Sri Lankan Apparel Industry Capability Report